Cash ISA holders have just four weeks remaining to fully utilise their annual tax-free savings allowance before the new 2026/27 tax year kicks off on April 6. Each year, ISA allowances reset, giving savers a fresh opportunity to deposit funds without paying tax on interest earned.
Currently, the annual ISA limit stands at £20,000, a figure that will remain for the next tax year before planned reductions for savers under 65 in 2027. Despite this, research reveals many UK savers have yet to maximise their ISA contributions.
Tesco Bank’s latest findings highlight that on average, Cash ISA holders have only deposited approximately £8,129 this tax year, leaving more than £11,800 of their allowance unused as the deadline approaches. Alarmingly, 11% of Brits have made no contributions whatsoever this year, while only 20% have reached the full £20,000 allowance.
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Chris Henderson, Save and Pay Director at Tesco Bank, emphasises the benefits: “Cash ISAs offer a fantastic tax-free way to save, enabling people to keep their interest without deductions. Whether raising funds for a special holiday, home improvements, or another significant life event, ISAs are a valuable tool to meet financial goals.”
With just a few weeks left until the ISA season ends, savers are encouraged to take advantage of the remaining time to maximise their tax-free savings and secure their financial future.