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Savers are set to have the rug pulled out from under them at the Budget on Wednesday with Rachel Reeves almost nailed on to cut the cash Isa allowance to almost half its current level.
It’s believed the Chancellor will cut the cash Isa allowance to £12,000 from its current £20,000 limit.
When she unveils her Budget, the Chancellor is expected to argue billions of pounds sitting in savings accounts would generate better returns if it was invested in the stock market.
Reeves had been mulling slashing the tax-free Isa allowance to £10,000, but has settled on a slightly higher figure amid a backlash over the proposal.
Money Mail’s Hands Off Our Cash Isas campaign had urged Ms Reeves to avoid overhauling the cash Isa allowance.
Below are the best places to keep your cash before the cash Isa allowance is slashed, which is likely to happen when the next financial year begins, in April 2026.
Squeezed: The Chancellor has decided to chop down the cash Isa allowance to £12,000 from its current £20,000 level
The five best Isas:
– Facts: £1 to open
– Transfers in: Yes
– Flexible: Yes
> Full details at Trading 212*
This is Money says: Trading 212 is the best cash Isa if you’re looking for the top rate at the moment and a true easy-access Isa that doesn’t cut rates for withdrawing money.
The rate includes a 0.68 per cent bonus rate which lasts for 12 months for new customers, after which it falls to 3.85 per cent. Use this special This is Money Trading 212* link to secure it.
Existing customers can earn 3.85 per cent with interest paid monthly.
The Isa is competitive because it has a good underlying rate, no withdrawal limits and is flexible.
Trading 212 will also apply the boosted rate to contributions made this tax year when transferring an Isa from another provider – previous tax year contributions receive the lower rate.
The account can only be opened by downloading Trading 212’s app. There are no limits to how many times you can withdraw your money and Trading 212 will not reduce your interest rate for accessing your money.
Trading 212’s Isa is a flexible Isa which is a big benefit to savers with the financial fire power to max out their Isa limit each year.
Any cash deposited with the Trading 212 cash Isa is fully FSCS protected, as are all of the accounts in this list. Funds in the Trading 212 Isa are held in partner bank accounts with Barclays, NatWest and JPMorgan, so they’re FSCS protected with these providers.
Customers are able to see the percentage of their cash held at each bank is in the interest on the cash tab in the Trading 212 app.
It means if you already have money in Barclays, NatWest or JPMorgan, you’ll need to be careful not to breach the £85,000 limit if you put money away with Trading 212.
– Facts: £1,000 to open,
– Transfers in: Yes
– Flexible: No
> Full details at Vida Bank
This is Money says: Vida Bank currently offers the best one-year fix. An account can be opened online via Vida’s website.
Vida accepts transfers in as long as the transfer is completed within 21 days of opening the account and you need a minimum of £1,000 to open an account.
Unusually you can add further funds to the fixed-rate Isa, as long as they are made within 21 days of opening the Isa.
– Facts: £1,000 to open
– Transfers in: Yes
– Flexible: No
> Full details at NatWest
This is Money says: It’s a rarity for a high street bank to offer a top rate, but NatWest is currently competing with top one-year fixes from newer platforms, so it’s worth mentioning because some prefer established names.
This fix is already closed for new customers (it ended on 23 October) but if you’re an existing NatWest customer you have until 28 October to open one.
You can withdraw money until 11 November, but then partial withdrawals aren’t permitted unless you close the account and pay an early closure charge.
Read more: The best bank accounts
– Facts: £1,000 to open
– Transfers in: Yes
– Flexible: No
> Full details at Secure Trust Bank
This is Money says: If you’re keen to lock away your money for longer to have the certainty of a fixed rate for your savings, Secure Trust Bank is currently offering the best two-year fixed rate.
You need to apply online and you can manage the account online, by post or over the phone.
The best cash lifetime Isa
– Facts: £1 to open
– Transfers in: Yes (not partial transfers)
– Flexible: No
> Full details at Moneybox
This is Money says: For those aged between 18-39 who are either saving up to buy their first home or towards retirement, this is the best paying cash Lisa deal on the market – and the top rate on any Isa product available at the moment.
Save up to £4,000 each tax year and get a 25 per cent government bonus. The deal is only available via its app.
The rate includes a 1.46 per cent fixed bonus for the first year, making the underlying rate is 3.05 per cent.
SAVE MONEY, MAKE MONEY
4.56% cash Isa
4.56% cash Isa
Trading 212: 0.71% fixed 12-month bonus
Sipp cashback
Sipp cashback
£200 when you deposit or transfer £15,000
Top Isa without bonus
Top Isa without bonus
Straightforward 4.55% cash Isa with no boost
£100 cashback
£100 cashback
5% cashback on investments, up to £100
£20 gift card
£20 gift card
Hold £1,000 after three months in Plum’s cash Isa
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