#cash-isa

#cash-isa

Cash ISA deposits to banks and building societies increased by 29% month on month to £4.2bn nationally. It's also higher year-on-year by 13%, despite interest rates being lower. Plum's own data shows that Cash ISA account opens are up by 42% last week compared to the previous week. The speculation about the reduction to the Cash ISA allowance is likely to have been a driving factor behind this, with many wanting to take advantage of the £20k allowance while it's still there.

Cutting the annual cash Isa allowance will not encourage many savers to switch to shares but could push up mortgage costs, MPs have warned the chancellor. Adults can put up to 20,000 a year in a tax-free Isa and spread the money between cash and stock market investments as they choose. In the 2023-24 tax year, 66% of all contributions went into cash savings.

Our ambition is to ensure that people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.

"Reports Rachel Reeves will announce a cut to the cash ISA limit at her 15 July Mansion House speech. If true, I think it's a mistake."