Home / Business and Economy / Cash Isa Alert: Allowance Slashed by Almost Half!
Cash Isa Alert: Allowance Slashed by Almost Half!
25 Nov, 2025
Summary
- Cash Isa allowance to be reduced to £12,000 from £20,000.
- The change is expected to take effect from April 2026.
- Trading 212 offers a top easy-access rate of 4.56%.
The upcoming Budget is poised to introduce a substantial reduction in the cash Isa allowance, shrinking it from the current £20,000 to an estimated £12,000. This move is anticipated to take effect from April 2026, impacting numerous savers.
The Chancellor is reportedly considering this cut to encourage individuals to invest savings in the stock market for potentially higher returns. Despite initial proposals for an even steeper reduction to £10,000, a compromise to £12,000 has emerged following backlash and advocacy from campaigns like Money Mail's Hands Off Our Cash Isas.
In the interim, savers seeking to maximize returns can explore current offerings. Trading 212 presents a competitive easy-access cash Isa at 4.56%, including a 12-month bonus for new customers. Other options include fixed-rate deals from Vida Bank and NatWest, and a cash lifetime Isa from Moneybox offering 4.51%. All accounts mentioned are FSCS protected.
