It’s no surprise April is normally ISA’s biggest month for subscriptions, and the start of the 2025/26 tax year was no different.
Savers poured into Cash ISAs in April, adding a record £14bn, before then following up strong in May too, with another £3.9bn.
With savers now having to contend with speculation of a potential Cash ISA allowance cut from chancellor Rachel Reeves, we could well see more piling into them.
If you’re looking to make the most of your Cash ISA allowance now, here’s how to get great Cash ISA rates.
This article isn’t personal advice. If you’re not sure if an action is right for you, ask for advice. Remember, ISA and tax rules can change, and benefits depend on individual circumstances.
To fix or not?
Savers seem to still be favouring easy-access accounts, but if you don’t need the money for a while, you should consider fixed-rate savings.
Despite expectations of further rate cuts later this year in August and November, plus the current geopolitical uncertainty, savings rates have remained relatively steady, with fixed terms paying around 4.2% AER on average.
Savers that put their spare cash into fixed terms six months ago will likely be very happy with the rate they’re getting today.
Likewise, there’s a strong chance anyone fixing today could be equally pleased with their strategy over the coming year.
With the news that Rachel Reeves could cut the Cash ISA allowance, now is a great time to think about using your allowance and locking in fixed rates where it suits.
The right home for your emergency savings safety net will always be easy-access savings, so you can get to it when you need it most. But as rates have fallen, it’s becoming more important to make sure you’re getting bang for your buck with a competitive rate.
And remember, you can’t withdraw from fixed rates until the terms ends.
How to find great Cash ISA rates
If you’re looking for great Cash ISA rates, there are still lots of rates available over 4% – above the latest inflation rate of 3.4%.
It’s worth shopping around with online banks and savings platforms, which tend to offer much better rates than the high street giants.
Here’s where the HL Cash ISA can help.
You can manage your Cash ISA portfolio with multiple banks all on a single online platform – so you can see everything in one place.
It also lets you spread your money across fixed-rate, easy-access, and limited-access products.
You can then manage it alongside your savings and investment accounts, all through one log in.
Just remember, products in the HL Cash ISA can be added or withdrawn at any time.
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