Savers get three-month warning over £50bn in maturing ISAs
Savers are being urged to act as a huge £53.9bn in cash ISAs will mature by April, according to Paragon Bank.
Paragon said that £36.4bn of that was held in one-year, fixed-term deals, which are almost certainly paying better rates than savers can get today.
Derek Sprawling, savings managing director at Paragon Bank, said: “Over two-thirds of cash ISA savings set to mature by the end of April are in one-year accounts. These savers will likely observe a slight decrease in market rates compared to the same period in 2024, while those with funds maturing in longer-term accounts should benefit from higher rates.”
The best cash ISA rate is currently 5.1 per cent, from Trading 212. This product has a 0.2 per cent bonus for one year, with no upper limit on how much can be paid in.
However, any amount above £85,000 per saver will not be protected by the Financial Services Compensation Scheme should Trading 212 fail.
The only two cash ISAs paying more than 5 per cent interest are from Plum (5.06 per cent) and Moneybox (five per cent).
Every saver can save up to £20,000 in cash ISAs every tax year without the interest being taxed.
Any unused allowance will be lost as it cannot be rolled over into the next tax year.
Sprawling added: “ISA season is extremely busy for savings providers, with high volumes of account openings and transfer requests. To better handle the high volumes, savings providers can take popular products off the market or make certain products available only to existing customers.
“Therefore, if savers are thinking of opening a new ISA this tax year or transferring an existing ISA balance to a new account, don’t leave it too late.”