Savers' £4.2bn sprint to beat Cash ISA cap

Savers rushed to beat last week's Budget by piling money into Cash ISAs amid fears that Chancellor Rachel Reeves would slash the annual allowance.

- Edited by HARVEY JONES

In total they funnelled £4.2billion into Cash ISAs in October, almost double September's figure, and Alice Haine, personal finance analyst at Bestinvest, said: “Many will have been spurred by speculation that Cash ISA subscriptions could be capped well below the £20,000 limit”

Today, pensioners can breathe a small sigh of relief as Reeves confirmed that over-65s will retain the full £20,000 Cash ISA allowance, sparing older savers from the squeeze facing everyone else. Haine said they should continue to make the most of this tax-efficient shelter, especially those with large balances languishing in taxable bank and building society accounts.