There’s been plenty of speculation in recent weeks that the government might cut the generous £20,000 annual ISA allowance – especially for Cash ISAs. Many expected Chancellor Rachel Reeves to make an announcement during her Mansion House speech last week. In the end, she didn’t.
The ISA limit remains unchanged, and savers can still put away up to £20,000 this tax year, with any interest earned staying completely tax-free.
But the story doesn’t end there. The Chancellor confirmed that discussions on the future of ISAs are still ongoing, with further changes potentially on the table later this year. Plans to reduce the Cash ISA limit had been under active consideration, and the government’s goal is to encourage more people – especially younger savers – to invest rather than keep money in cash.
While that debate continues, what matters today is this: no changes have been made yet. So if you’ve been thinking about opening or topping up a Cash ISA, now may be the best time to act – before any new rules come into effect.
Cash ISAs still offer one of the few remaining ways to earn tax-free interest, and they remain a useful tool for short-term goals, emergency funds, or simply keeping your money sheltered from tax.
Whether you’re saving, investing, or doing a bit of both, it’s worth taking a look at how you’re using your ISA allowance this year – because while the rules are still in place, they might not stay that way forever.
What you can do now
Until any official changes are announced, the £20,000 ISA allowance still stands (for cash and investments). That means you can put up to £20,000 in a Cash ISA today and lock in your tax-free benefits for the rest of the tax year.
Here’s how to make the most of it.
- Front-load your contributions: If you’re in a position to do so, consider topping up your Cash ISA as much as possible now at the start of the tax year to beat any potential changes in the Autumn Budget.
- Mix savings and investing: Use your ISA allowance to balance both cash and investment goals. A Stocks and Shares ISA could complement your Cash ISA and help you grow wealth over time.
- Don’t leave money in a standard savings account: Even if you’re not ready to invest, moving your money into a high-interest Cash ISA could boost your returns and shelter any interest from tax.
Act now, before it’s too late
Until the government confirms any changes, it’s all speculation. But one thing is clear: tax-efficient savings opportunities shouldn’t be taken for granted.
You can now earn 4.10% AER* with our Cash ISA, a simple, flexible way to grow your savings tax-free. Enjoy daily interest from the moment your deposit arrives, with no fees, no hassle, and the peace of mind that comes with FSCS protection up to £85,000.
- Earn daily interest – Watch your savings grow every day.
- Flexible and accessible – Withdraw up to three times a year without affecting your rate, and top up anytime.
- Secure and protected – Your money is held with trusted partners and covered by FSCS protection.
- Free ISA transfers – Easily consolidate your savings, with no transfer fees.
*Variable rate correct as at 18/07/25. Subject to conditions and ISA rules.
Please remember that when investing, your capital is at risk. The value of your portfolio with Moneyfarm can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance. The views expressed here should not be taken as a recommendation, advice or forecast. If you are unsure investing is the right choice for you, please seek financial advice.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
