Flick switch on Cash ISAs

THE clock is ticking for savers keen to use this year's Cash ISA allowance, with the deadline just over a fortnight away on April 5.

- By Harvey Jones

Although Chancellor Rachel Reeves has reportedly decided against slashing the allowance from £20,000 to £4,000 in her upcoming Spring Statement on March 26, its long-term future remains uncertain.

That makes using as much of this year's allowance as possible more important than ever, in case she cuts it later. Despite February's 0.25% cut to the Bank of England base rate, the third since last August, savings rates have held up better than expected, said Anna Bowes, a savings expert at advisers The Private Office: “The best rates have remained surprisingly resilient, with many still outpacing inflation, which stands at 3%.”

The average easy access Cash ISA pays 3.01%, according to Moneyfacts, while the average one-year fixed Cash ISA pays 4.11%.