Choose to make the most of your ISA before the tax year ends

With 5 April fast approaching, now’s the time to give your ISA a bit of attention. The end of the tax year has a habit of creeping up on us and, as we all know,  your annual ISA allowance is strictly use-it-or-lose-it. The good news? Even a few smart moves in the next few weeks can make a real difference to your financial future. Here are three ways to make the most of what’s available to you.

1. Top up – every penny counts

You can save or invest up to £20,000 per tax year inside an ISA, completely free from income tax and capital gains tax. The money grows in a protected wrapper for as long as you keep it there. So even if you’re nowhere near the full allowance, topping up whatever you can before 5 April is worth doing.

Check what you’ve already paid in this year and see how much headroom remains. If you have any spare savings sitting in an ordinary account – earning taxable interest – moving some of it into your ISA before the deadline is one of the simplest financial wins going. There’s no complicated form-filling or investment strategy required. Just transfer the money in and let the tax-free status do its thing.

2. Review your rate

Millions of UK adults¹ are leaving their money in accounts earning little or no interest, meaning they could be missing out on better rates available elsewhere.

The good news is you can move your Cash ISA to a new provider without losing any of your tax-free status – you just need to use the official ISA transfer process rather than withdrawing the cash yourself.

ISA transfers don’t count towards your current year’s allowance, and your existing pot keeps its full tax-free protection. And with cash savings rates having shifted meaningfully in recent years, even a seemingly small difference in interest rate adds up over time. Set aside half an hour before 5 April to compare what’s on offer – it could be one of the most financially rewarding 30 minutes you spend this year.

3. Look ahead: ISA rules are changing for under-65s

If you’re under 65, there’s an important proposed change on the horizon. From 6 April 2027, the amount you can contribute to a Cash ISA each year will be capped at £12,000 – down from the current £20,000. The overall ISA allowance stays at £20,000, but the remaining £8,000 will need to go into a non-cash ISA, such as a Stocks & Shares ISA. If you’re 65 or over, nothing is currently set to change – you’ll keep the full £20,000 cash option.

There’s also a proposed ban on transferring from a Stocks & Shares ISA into a Cash ISA for under-65s, preventing savers from getting around the new limit via transfers. On top of that, the rate of tax on savings interest earned outside an ISA is set to rise by two percentage points from April 2027 – increasing from 20% to 22% for basic-rate taxpayers, 40% to 42% at the higher rate, and 45% to 47% at the additional rate. This makes the ISA wrapper even more valuable than it already is.

Crucially, existing Cash ISA balances are fully protected. The new rules only apply to fresh contributions made from April 2027 onwards.

The practical takeaway?

The 2025/26 and 2026/27 tax years may be your last two chances to put the full £20,000 into a Cash ISA. The landscape is changing, but an ISA is still a valuable tax-efficient way to save.

Take a look at CSB’s range of ISAs and make the most of your money.

Choose maximising your tax-free ISA allowance. Choose more for your future. Choose CSB.

¹ https://moneyage.co.uk/over-eight-million-current-accounts-with-10k-earning-zero-interest.php