Savers are being urged to ‘act now’ to make the most of tax-free interest on savings before the tax year starts on Monday.

There’s now just hours to go for savers to deposit savings into a Cash ISA before the 11.59pm deadline this evening (April 5), after which the annual £20,000 allowance will reset for the new financial year. Despite changes which have been announced for Cash ISAs for 2027, the limits for the coming tax year remain unchanged meaning adult savers can put up to £20,000 into a Cash ISA and savings will be free of income tax and capital gains. From April 2027, Cash ISA allowances will be cut to £12,000, meaning the current and 2026/27 tax years are the last to shelter the full £20,000.

But savers only have until 11.59pm today to capitalise on this allowance, so if you haven’t opened a Cash ISA yet, it’s well worth doing before the new tax year starts.

Several ISA providers are currently offering inflation-beating rates of above 4% interest on ISA products, so now is an ideal opportunity to capitalise on tax-free interest on your savings.

This time of year, called ‘the golden window’, tends to be the best time for ISA savers to get higher rates, as ISA providers look to attract customers trying to use up their £20,000 allowances before it resets in the new tax year. That means by acting now you can secure a better rate for your savings and use up your tax-free allowance.

Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, said: “The end of the 2025-26 tax year at midnight on April 5 is approaching fast and at a time when tax efficiency has rarely mattered more, savers and investors should ensure they do not miss out on valuable tax-free allowances.

“The UK has been hit with a series of tax changes in recent years that will significantly increase personal tax burdens and erode disposable incomes – making the case for tax-efficient saving and investing even more compelling.

“Chancellor Rachel Reeves’ decision in the recent Autumn Budget to extend the freeze on income tax thresholds until April 2031 will gradually drag millions more people into higher tax bands as wages rise.

“The Budget also set out 2-percentage point increases in tax rates on dividends from April 2026, and on savings interest and property rental income from April 2027.”

She added: “With so many tax changes to weigh up, getting your financial house in order – and maximising allowances while they remain in their current form – is essential for anyone looking to mitigate their rising tax burden.

“Remember, some allowances can be carried forward to the next tax year, but most cannot, so it really can be a case of ‘use it or lose it’.”

According to MoneySavingExpert (MSE), the top paying cash ISA right now is an easy access Prosper account, offering 4.7% AER for new customers.

Other good deals include Moneybox at a rate of 4.43% for new customers, Virgin Money at 4.15% and Trading 212 at 4.58% for new customers only.

James McCaffrey, spokesperson for TotallyMoney, said: “Right now is peak season for ISAs, with providers improving rates as they battle it out to attract customers. And with the ISA allowance being cut to £12,000 from April 2027, anybody who can afford to, should make the most of the full £20,000 while they can.

“When shopping around, don’t ignore the smaller providers, as they’ll often be providing the best rates – while you’ll get the exact same protection as you would with the high street banks under the Financial Services Compensation Scheme.

“ISA allowances reset on the 6th of April – and what you don’t use before then, you’ll lose. So, if you’re sitting on savings, or you’ve been meaning to open an ISA for a while, now’s the time to make a move. You can put up to £20,000 across all ISA types this year, and any interest earned is tax-free.”