The start of the new tax year is often a good time to take stock of your finances, to review what you already have and consider what you need to do next. And in today’s environment, where every penny counts, making full use of the tax allowances that are still available has never been more important.

The ever-popular Individual Savings Account, or ISA is a good place to start. Like a lot of our tax allowances, the ISA allowance has been frozen for many years, so for the 2026/27 tax year, the overall ISA allowance remains at £20,000, offering one of the simplest and most effective ways to protect your savings and investments from tax on interest, dividends, and capital gains.

However, there are changes coming for those who favour the cash element of an Individual Savings Account (ISA).

Cash ISA allowance to be cut

Cash ISAs regained their popularity over the last few years, as interest rates increased, which led to savers paying more tax than they had for over a decade when interest rates were at rock bottom. There is now some £458 billion stashed away in cash ISAs, almost a quarter of the total amount held in cash savings. But for savers under the age of 65, the current tax year is the last chance to make use of the full ISA allowance for cash only deposits.

From 6 April 2027, the rules are set to change. Whilst the overall ISA allowance will remain at £20,000, only £12,000 of that can be deposited into a cash ISA for those aged under 65. To use the full allowance, the remaining £8,000 will need to be invested in a stocks and shares ISA.

To add insult to injury, at the same time that the cash ISA allowance is to be cut, the tax on savings interest will be increasing by 2%. So, a basic rate taxpayer will pay 22% on any taxable interest, it’s 42% for higher rate taxpayers and 47% for additional rate taxpayers, making the cash ISA even more valuable.

The good news is that those aged 65 and over are not affected by this change. They will still be able to place the full £20,000 into cash if they wish, a welcome exemption for older savers. But it highlights a broader policy direction, encouraging younger savers towards investment. 

A nudge towards investing

Whilst the comfort of a cash ISA is understandable, particularly in volatile times, it’s important to be aware that inflation can quietly erode the value of savings, and even with improved interest rates, cash may struggle to deliver meaningful real returns over time if inflation is higher than the interest you are earning. So, it might be worth asking yourself whether a purely cash-based approach is the right strategy for the longer term.

This is where stocks and shares ISAs come into play. They are not without risk though as values can go down as well as up. But they offer the potential for growth that cash generally cannot match over the long term, as long as you are prepared to accept the inevitable bumps in the road. You can of course, choose investments that better reflect your own personal attitude to risk, which will help minimise any potential downs and ups.

These changes could therefore be viewed as a prompt to diversify if you don’t need access to your money for the longer term, so more than five years. Using some of your ISA allowance for investment could make a meaningful difference to your future financial health. 

Use it or lose it

Given the upcoming changes, this tax year (2026/27) is an opportunity not to be wasted. If you are under 65 and prefer cash, it may make sense to maximise your cash ISA contributions while you still can.

And due to the ongoing conflict in the Middle East, with the expectation that inflation and therefore the Bank of England base rate could rise, savings rates have been increasing recently. Good news for savers, especially those who don’t also have debts.  

So, if you have funds sitting in taxable accounts, now is the time to consider sheltering them, as once the tax year ends, you can’t carry it forward.

Don’t overlook the Lifetime ISA

Alongside the standard ISA options, there is also the valuable Lifetime ISA (LISA), which is available to those aged between 18 and 39. The LISA allows you to contribute up to £4,000 per tax year, which counts towards your overall £20,000 ISA allowance and the real attraction is the generous 25% government bonus. In simple terms, a £4,000 contribution is topped up to £5,000, an immediate and very attractive return, even before any interest of investment growth is added.

Traditionally, the LISA has served a dual purpose: helping people save for their first home or for retirement. However, it is currently under review, and there is growing speculation that the retirement element could be removed going forward, making it simply a product for first-time buyers.

In the meantime, for those eligible, it remains a compelling option, particularly if you are saving for your first home.  

ISAs for the next generation

It’s also worth remembering that children have their own ISA allowance through the Junior ISA (JISA).

With a current annual allowance of £9,000 per year, the Junior ISA allows parents, grandparents, and others to build a tax-free savings pot on behalf of a child. It can be held in cash or invested, depending on your preference and time horizon.

There is, however, an important point to bear in mind: there is no access to the money until the child turns 18, at which point they gain full control of the account, which could have grown to a really significant amount. The funds become theirs to use as they wish, whether that’s for university, a car, a house deposit, or, indeed, something less sensible.

Alternatively, the funds can be rolled over into an adult ISA, retaining the tax-free status and allowing the savings habit to continue into adulthood.

For those who save for their children, it makes sense to have open conversations with them as they grow older, so that hopefully they will do the right thing with this valuable gift. Financial education is just as important as the savings themselves.

Time to take action

The beginning of the tax year is a great time to make use of your ISA allowance, for a couple of reasons.  

First, during the ‘ISA season’ of which April is the pinnacle, cash savings providers tend to compete with each other, which pushes rates higher, providing plenty of choice.

Secondly, why leave your cash in a taxable account any longer than you need to. Although often the headline rates on taxable fixed rate bonds may look higher than the same term cash ISAs, once you deduct income tax, you can earn far more in the tax-free ISA, as the table below illustrates:

Now is also a good time to review your old ISAs, to see if you could be earning more by switching. The key rule is vital though - never withdraw the funds yourself. Instead, always use the official ISA transfer process provided by your new provider, who will liaise directly with your existing bank or building society. If you take the money out and attempt to redeposit it, it could lose its ISA “wrapper” which crucially means you would forfeit the tax-free status tied to those historic allowances. Given that ISA allowances cannot be reinstated once lost, this is an irreversible and often costly mistake.  

Reviewing your old ISAs whilst making the most of your new ISA allowance means that you can make your cash work as hard as possible, particularly important if we are to see inflation spiking upwards once again.

If you want to make your cash work harder, it is important to compare rates regularly and move money when better deals arise. In a market that is shifting and where relatively small rate differences can add up to hundreds of pounds over a year, staying informed is the best way to keep your savings working as hard as possible. Check our best buy tables for the most up to date savings rates. 

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Rates correct as at 07/04/2026. 

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

Inflation held steady at 3% in the 12 months to February, matching expectations and unchanged from January, though it continues to sit above the Bank of England’s 2% target.

It should be noted this figure was recorded prior to the outbreak of conflict in the Middle East, which has since driven up the cost of energy and fuel, meaning inflation is expected to rise in the coming months.  

Despite the sticky 3% rate of inflation, pensioners are set to receive higher state pension payments from Monday 6 April, during the first full week of the new tax year.

The main state pension rate is set to rise by 4.8% under the ‘triple lock’ system.

This established government policy ensures the state pension increases each year by the highest of inflation, average earnings growth, or 2.5%.

For this year’s adjustment, earnings growth was the deciding factor during the key reference period used to set the increase.

This means that pensioners are actually beating the rate of inflation for the start of the new tax year. And because the average earnings growth has now fallen below 4% according to ONS figures from November 2025 to January 2026, pensioners are also set to see a bigger increase than the workforce, since wages growth for the triple lock is calculated between May and July the previous year.  

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affects the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

While the rate has dropped significantly since then, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

Our chartered advisers are unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch. 

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

At the time of writing the Middle East conflict is in full flow. The Straits of Hormuz are effectively closed, and markets are swinging on a daily basis depending upon whether Donald Trump has got out of the left hand side or right hand side of his bed. In short, no one has got the faintest idea what’s happening and by the time this article goes to print, for all I know, the war will be over, and markets would have jumped 10% or, things will have escalated and markets will have fallen 10%.

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“Don’t panic Mr Mainwaring” blurted Corporal Jones, in virtually every episode of the classic BBC comedy, Dad’s Army. Of course, no one was panicking, except for Corporal Jones himself and in this state of blind panic, he was the least likely member of the platoon to be able to resolve the predicament they happened to be in. Panicking, generally, does not lead to sound decision making and certainly not sound financial decisions.

There are plenty of reasons to ‘panic’ in today’s world (financially and otherwise) but as Corporal Jones has shown us, panicking gets you nowhere. Life goes on, and the markets go on too and the worst thing investors can do is convince themselves that “this time it’s different”, that the end is nigh and that we all need to grow carrots and store drinking water in industrial quantities.

In their 2009 book “This Time is Different”, the economists Carmen Reinhart and Kenneth Rogoff argue that investors always fall for the trap of believing that the game is up and that capitalism is over and investing is no longer viable. There are always people who come out of the woodwork at these moments in time to endorse and bolster the naysayers, not because their views are valid but because the media is prepared to give them airtime. Funnily enough, we do not hear about them much when markets are doing well which, believe it or not, is most of the time.

The peace of mind a financial plan provides

I’m not pretending that the Iran war isn’t a threat to the world economies, far from it, but I wouldn’t like to bet on markets being lower in a year’s time to where they are now. They might be, of course, but if you want to safeguard yourself against inflation, history has taught us that market exposure is the best way to do it. Cash and bonds generally lose in real terms over the long term.  

Markets tend to recover from shocks, whatever they are, and economists call this antifragility, which is the general principle that markets are able to adapt to new conditions. As one source of enterprise closes down, another one opens up and markets always sniff them out, if not immediately, then in time.

It is all well and good to say "don’t panic," but that is much easier to achieve if you actually have a plan in place. The major benefit of having a plan that you regularly revisit is the emotional peace of mind it provides. It moves you away from making knee-jerk reactions based on the morning's headlines and back towards a structured approach. If your personal circumstances change, or the government decides to shift the goalposts on taxes, a quick review of the plan will tell you exactly what needs to be adjusted. By keeping a close eye on your financial roadmap, you can ignore the noise of the markets, knowing that while the path might get a bit bumpy, you are still heading in the right direction.

What we already know

In addition to the “unknowns” (such as the Iran war), we also have the “known” events of future tax changes which are much favoured by the current Labour Government. On going stealth taxes, announced in 2021 as a short-term measure post Covid but now expected to continue until at least 2031. Dividend Tax increase and VCT relief reduction (April 2026); IHT on pensions (April 2027); Mansion Tax (2028) and Salary Sacrifice capping (2029).  

In previous articles I have highlighted the dangers of not investing. Just to remind you, in the 20 years from 1st January 2004, $10,000 invested in the S&P 500 would have grown to $66,637 (an annualised growth rate of 9.7%). Had you missed the best 10 days during that 10 years the final sum would have been $29,154 (5.5% annualised growth rate). Take away the best 20 days and it’s $17,494 (2.8%). The message is, of course, stay invested and don’t try to call the markets.

As always, the key is to ensure that you have sufficient liquidity to ride out market volatility. For clients who are nearing retirement, they enter into the ‘decumulation’  - or ‘drawing down’ - phase of their investing life. That is, the scary moment when assets accumulated over decades must now step up to the plate and start delivering actual money to ensure a comfortable retirement. If you don’t plan this properly, you become exposed to what is known as “sequence risk”. This represents a significant threat to portfolios if investments are encashed to meet ongoing expenditure during a market downturn. Risk management planning is vital in retirement to ensure you avoid this pitfall. Investment portfolios need to remain invested, to protect them from long term real value erosion, but for decumulators, the higher risk elements must still be viewed as long term and kept invested for many years, if need be, to await a recovery if the downturn is severe. That’s why the cash buffer is important!

In January 2026, markets were looking bullish, economies were generally on the up and most market commentators were positive about the prospects of equity markets continuing to do well. So, what do we do? Keep calm and carry on investing, or, to quote another Dad’s Army character, hold our heads in our hands and say “we’re doomed!”.

But whatever you decide, the best approach is to have your own personal plan in place, review it with your professional advisers and above all, don’t panic!

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, will writing, tax or trust advice.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

Past performance is not a reliable indicator of future performance.

There are now more ISA millionaires than National Lottery millionaires, according to new HM Revenue & Customs (HMRC) figures. 

The figures were obtained by a freedom of information request by Plum to HMRC and revealed that there were over 5,000 ISA millionaires by the end of the 2022/23 tax year with a further 7,470 pots that would have likely reached seven figures since the data was recorded.

The National Lottery, conversely, produced a little over 7,700 millionaires by 2025 and is expected to add only another 400 this year, leaving it notably behind the growing ISA millionaire class.  

With tens of thousands more pots forecasted to be added to the ISA millionaire list over the next decade, ISA millionaire status is becoming the new golden target for ambitious savers to reach.

The average ISA millionaire held a pot worth £1.35 million at the end of the 2022/23 tax year, while the top 25 ISA millionaires had average holdings of £11.3 million each.

This marks yet another victory for ISAs and demonstrates the popularity and effectiveness of the UK’s most well-known tax-free investment wrapper.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest. They have become more popular over the past few years due to rising interest rates increasing the competitiveness of savings products.  

You can save up to £20,000 each tax year across ISAs and receive tax-free interest payments and capital gains, so when the value of your ISA increases, you get to keep all of it tax-free. Though the total amount you can save across your ISAs is £20,000, some ISAs have specific limits, such as the Lifetime ISA which is currently £4,000 per annum and of course the cash ISA limit will be falling to £12,000 from April 2027 for those aged under 65.  

While there is a £20,000 allowance in place for how much you can put in per year, there is not a cap on how much you can accumulate in an ISA over a lifetime.  

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

In the latest blow for savers, the government-backed provider, National Savings & Investments (NS&I), has announced it will be cutting the Premium Bonds prize fund rate from 3.60% to 3.30%, effective from the April 2026 draw. This fall in the headline rate will also cut the odds of each bond winning a prize from 22,000 to 1 to 23,000 to 1.

For the millions of NS&I customers, this is another disappointment which follows a series of recent rate cuts to a number of NS&I products.  

Whilst this latest change may not alter the basic appeal of Premium Bonds, capital security and the chance of tax-free prizes, it does reduce the expected returns and slightly worsens the chances of winning.

The total number of prizes is expected to drop from over 6.2 million in March to around 5.9 million in April. While the two £1 million jackpots remain, the "middle" and "lower" tiers of prizes are being squeezed.

Why is NS&I cutting the rate?

Although this latest announcement came at a time when the broader savings market had begun to soften, with many banks trimming their rates, there is another important factor in the background.  

One of the key reasons for this move is likely to be so that the annual Net Financing Target isn’t breached. The Net Financing Target is the amount of money the Treasury tasks NS&I with raising from the British public each tax year – and the current target is £13 billion.

The latest provisional results for the third quarter of the 2025/26 tax year show that NS&I is already very close to its target. By the end of December 2025, they had already raised £9.9 billion, with a forecast of reaching £13.6 billion by the end of the financial year – so slightly over target, although within the leeway of plus or minus £4 billion.  

When NS&I has too much money coming in, its products need to be less competitive, making them less attractive, discouraging a further flood of cash that they simply don't need. This latest move follows recent cuts to the Direct Saver and Income Bonds, as well as their fixed term accounts, proving that the Treasury is currently feeling  well-funded.

Are Premium Bonds still worth considering?

Although now a little less appealing, Premium Bonds are likely to remain a popular choice, especially for taxpayers, as winnings are tax-free. Rather than paying interest, Premium Bonds give holders the chance to win prizes ranging from £25 to £1 million each month, although as mentioned above, the odds of winning any prize have reduced a little.

Despite this, many savers are likely to keep their Premium Bonds because of the ‘what-if’ factor – the excitement of potentially winning big.

And for those who pay tax on savings interest, Premium Bonds could offer particularly competitive returns. For example, a tax-free win of the new prize fund interest rate of 3.30% is equivalent to a 4.13% return for basic-rate taxpayers, 5.50% for higher-rate taxpayers, and 6% for additional-rate taxpayers in a taxable savings account. No savings accounts currently offer anything close to these rates for higher and additional taxpayers.

Of course the risk is that you win either less than this or even nothing at all, although the latter is highly unlikely if you have a larger holding in Premium Bonds. However, for someone holding only a small balance, it is entirely possible to go years without winning anything.

Premium Bonds remain a quirky and popular savings product, but they work best when viewed as a safe place for cash with the added excitement of a prize draw, rather than a reliable source of income.

And as NS&I carefully manages its funding targets, further tweaks to rates across its range of accounts should never come as a surprise. 

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This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning.

Rachel Reeves delivered her Spring Forecast this afternoon, which had been overshadowed before it even started by events in the Middle East.

As expected, the Spring Forecast (rather than Spring Statement as it has been referred to in previous years) did not include any fiscal changes, with Reeves previously committing to only holding one fiscal event each year, in the Autumn Budget.

By way of updates, Reeves announced that the Office for Budget Responsibility (OBR) had ‘adjusted the profile of GDP’ resulting in it downgrading its UK Growth projection for 2026 from 1.4% (as forecast in November 2025) to 1.1%, but the OBR increased its forecasts for 2027 (1.5% to 1.6%) and 2028 (again 1.5% to 1.6%).  Reeves also heralded the interest rate cuts seen in recent months, but events in the Middle East have significantly reduced the chance of a further cut in March, given the inflationary oil and gas price rises seen since the weekend.

Therefore, the most important upcoming tax changes are those we already knew about, specifically:

• A 2% increase in dividend tax taking effect on 6 April 2026.
• VCT tax relief being cut from 30% to 20% on 6 April 2026.
• Business and Agricultural Relief limited to £2.5m per individual, with effect from 6 April 2026 – this importantly increased from the previously proposed £1m and can be passed between spouses if not used on first death.
• A 2% increase in savings and property taxes taking effect on 6 April 2027.
• A cap in Cash ISA contributions of £12,000 for under 65s with effect from 6 April 2027.
• Pensions forming part of estates for inheritance tax purposes from 6 April 2027.
• A Mansion Tax being introduced in April 2028.
• Salary Sacrifice pension contributions benefiting from National Insurance Contribution savings limited to £2,000 with effect from 6 April 2029.
• Income Tax thresholds frozen until April 2031.

If you would like to discuss the impact of the above on your personal financial situation, why not get in touch for a free initial conversation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions

The Financial Conduct Authority (FCA) does not regulate estate planning or tax advice.

The increasing number of online ‘finfluencers’ has pushed regulators to take legal action in an unprecedented crackdown on online personalities handing out financial advice.

Following a freedom of information act requested by BrokerChooser, the Financial Conduct Authority (FCA) revealed action being taken against unauthorised finfluencers has increased by 174% last year.  

Importantly, this has led to three finfluencers being arrested and charged with encouraging followers to invest in high-risk foreign exchange traded funds. Their court appearances are set for 2027.

This is important as it demonstrates the shifting landscape around unregulated financial advice. For many years the finfluencer trend has been growing, with many content creators, such as those found on TikTok or Instagram, pivoting to give their often young audience questionable financial advice, sometimes in the form of ‘get rich quick’ schemes.  

Given the sheer scale of unregulated financial advice being promoted on these social platforms, there are calls for broader social media reform and platform cooperation. 34 million videos are uploaded to TikTok every day, and the FCA cannot check every one.  

However, the first arrests demonstrate that the FCA is serious about cracking down on the trend, and sets a precedent that things are changing.

The FCA commented: “Even when social media platforms remove the illegal content we flag, new accounts pop up in no time with identical, or almost identical, content. They must be more proactive in identifying and removing unlawful content early before it reaches UK consumers.”

Despite this, it is important to recognise that there is another side, and the FCA does acknowledge that some finfluencers can offer helpful guidance, which makes policing the content all the more difficult.

What is a ‘finfluencer’?

Finfluencer is a relatively new term, used to describe a content creator who operates on social media to promote financial products and services to their audience. What separates a finfluencer’s advice from real financial advice is the finfluencer is often unqualified, unauthorised and unregulated. Finfluencer derives from the term ‘influencer’ which, in marketing and social media terms, refers to a person with the ability to influence viewer’s opinions on social media or video sharing platforms like YouTube. You do not need to prove that you have any qualifications to become a finfluencer, you just need to have an audience.

The problem with finfluencers

If a finfluencer is knowledgeable about the product or service they promote and their content is considered 'responsible' by the FCA, finfluencers can actually be beneficial. They help to educate buyers and help them to evaluate their choices and understand the variety of products available to them in a simple and easy to digest way.

The problem is that there are many examples where this is not the case. Many finfluencers promote unlawful 'get rich quick' schemes or act irresponsibly in their communications, with endorsement of questionable crypto investments and ‘memestocks’ being a common trend (at the time of writing). In such cases, less knowledgeable audience members could be exploited and even scammed, with 55% of those who have followed financial advice on social media reporting losing money, according to TSB.

Aside from the obvious detriment to the victims of this kind of unlicensed advice, the wider reaching implication is that this misinformation leads to a general distrust of financial services, further discouraging financial literary and ultimately hurting the average consumer.

 If you are tired of misinformation and are seeking real, impartial and fully qualified financial advice, book a free non-committal initial consultation with one of our accredited advisers who will be happy to help. Alternatively, you can give us a call on 0333 323 9065.  

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This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.

It’s been a curious few weeks for savers; a tale of two trends in the fixed rate tables in particular and a timely reminder that inflation, the Bank of England base rate and savings account rates don’t always move in perfect harmony. The good news is that the resilience of certain pockets of the savings market is providing a golden opportunity for those who are quick to act.

Inflation: heading in the right direction  

The latest figures from the Office for National Statistics (ONS) show that the rising cost of living slowed to 3% in the 12 months to January 2026, down from 3.4% in December last year. That’s a meaningful drop and, on the face of it, very welcome news for households.  

Better still, many forecasters expect inflation to continue to fall this year, potentially reaching the Bank of England’s 2% target by the summer.  

However, what’s good news for borrowers and the wider economy isn’t all good news for savers.  

With inflation easing, the likelihood of further base rate cuts from the Bank of England has increased. Markets are widely expecting a 0.25% cut at the next meeting on 19th March, with an ever increasing possibility of a couple more to follow later in the year.

And that’s where things get interesting.

A tale of two fixed rate tables

Despite the expectation of falling base rates, savings rates have been remarkably resilient. So now could be a good time to lock in some of your cash, to hedge against further base rate and therefore savings rate cuts.  

In the fixed rate bond tables, shorter-term rates have edged down slightly recently, but not dramatically. The top 1-year bond is currently paying 4.23% from Union Bank of India UK, only fractionally lower than the 4.25% we saw from DF Capital before it withdrew its market-leading deal a couple of weeks ago.  

In the 2-year space, rates have also dipped only marginally. Chetwood Bank now tops the table at 4.17%, just shy of the 4.19% and 4.18% that were available recently from Close Brothers, Birmingham Bank and OakNorth Bank before those products were withdrawn.  

But here’s the really encouraging part: longer-term rates have actually ticked up.

Chetwood has also taken the lead in the 3-year table with 4.20%, nudging OakNorth into second place at 4.18%. And in the 5-year table, Chetwood is offering 4.36% AER – the highest 5-year rate we’ve seen since November last year!  

So, while short-term rates may be softening slightly in anticipation of base rate cuts, those willing to lock in, especially for the longer term, are being rewarded.  

A similar pattern in fixed rate ISAs

The fixed rate cash ISA tables tell a very similar story.  

Shorter-term ISA rates have edged down. The top 1-year ISA is now 4.10% from State Bank of India UK, compared with 4.15% just a couple of weeks ago. The average of the top five has also slipped as providers have withdrawn higher-paying deals and replaced them with slightly less generous versions.  

In the 2-year ISA table, Furness Building Society leads at 4.07%, but that’s still below the 4.11% that had been available from Tandem Bank recently.  

The 3-year ISA table has been steadier.  Aldermore remained mostly unchallenged at 4.15%. Close Brothers had briefly knocked Aldermore from its perch offering 4.16%, but this has subsequently been withdrawn.  And unfortunately Tandem and Cynergy which were also offering 4.15% have launched new ISAs paying less, so overall the average has fallen. As a result of this benign behaviour from others, Aldermore has reduced the rate it’s offering to 4.10% - lower but still the best rate!

In the 5-year ISA market, there has been a little more competition, pushing rates up. Castle Trust Bank launched a 5-year ISA at 4.25%, just ahead of Hampshire Trust Bank at 4.24%. Close Brothers then matched the 4.25%, albeit with a higher minimum deposit.  

Once again, the message is clear: if inflation and interest rates continue to fall, those who lock in now, especially for longer, could look back and feel very smug indeed.  

It’s probably worth remembering that whilst at first glance cash ISAs look like they pay a lower interest rate than the equivalent fixed rate bonds, once you strip tax from the advertised rate, cash ISAs often offer far better value to those who pay income tax on their normal savings.    

For example, at the time of writing, the top 1-year fixed rate bond is paying 4.23% AER, whilst the top 1-year fixed rate cash ISA is paying 4.10% tax-free/AER. For those who don’t pay tax on their savings, the bond is clearly the winner as it would provide an extra £13 of gross interest for each £10,000 deposited. 

But if you are a taxpayer, you could earn more in the ISA. The rate on the bond would fall to 3.38% after basic rate tax has been deducted, so a basic rate taxpayer with a deposit of £20,000 would earn £820 in the cash ISA, but just £676 from the bond, if they have already used their Personal Savings Allowance. 

The real danger is inertia  

According to the Bank of England, more than £298 billion is sitting in current accounts earning no interest at all. Zero. Nothing. Not even enough to buy a coffee.  

And the high street bank’s so-called savings accounts often pay some of the worst rates available - well below inflation. If inflation is 3% and you’re earning less than that, the purchasing power of your cash is quietly eroding. But it doesn’t have to be that way. You can do better – much better.  

The first and most obvious solution is to shop around and open the best accounts directly. The top rates in the market are significantly higher than those offered by most high street banks. Yes, it may mean opening accounts with names you’re less familiar with, but provided they are authorised and therefore part of the Financial Services Compensation Scheme (FSCS), your money is safe up to the new limit of £120,000 per person, per banking license.  

The exception is if you choose to hold funds with National Savings and Investments (NS&I), as all money held in the State-owned bank is fully backed by the Treasury, regardless of how much that is, although the payoff is that its rates have become less competitive of late.  

For some, opening and monitoring multiple savings accounts is fine.  For others, it’s precisely the reason they never move their money.  

The rise of the cash platform  

And this is where innovation is finally catching up with savers’ needs.  

Cash platforms – including our own Savers Hub, powered by Insignis – allow you to access a wide range of competitive savings accounts through a single log-in. You can spread large sums across multiple banks, stay within FSCS limits, and manage everything in one place.  

Crucially, you don’t need to keep monitoring maturity dates and constantly scanning the market for replacements. The platform does the heavy lifting by letting you know when money is maturing and if better rates become available.  

As we approach the end of the tax year, it’s also worth remembering that you can open cash ISAs via the platform and transfer in existing ISAs, helping to consolidate what can otherwise become a patchwork quilt of accounts built up since ISAs were introduced back in 1999.  

For diligent savers who have used their allowance year after year, ISA pots can now run into very substantial sums – often spread across multiple providers. Bringing them together onto one platform can dramatically simplify your financial life.  

The bottom line

Inflation is falling. Base rate cuts are likely. Savings rates, for now, are holding up better than many expected, particularly for longer fixes. 

But the real risk isn’t whether you fix at 4.23% or 4.17%. 

It’s leaving your hard-earned cash earning next to nothing because moving it feels like too much effort. 

In a falling rate environment, inertia becomes even more expensive.  

Whether you take control yourself and open the best accounts directly, or use a cash platform to do the legwork for you, there has never been a better time to make sure your savings are working as hard as you do. 

For the best rates available, keep an eye on our Best Buy tables, which monitors the very best rates from the whole of the market. 

But if you are one of those people who are cash rich but time poor, take a look at how our Savers Hub could help you. Request a non-obligatory illustration today or request a demonstration of how the cash platform could help you with managing your savings effortlessly.  

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Rates correct as at 27/02/2026.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

The UK inflation rate fell to 3% in the year to January 2026, according to the latest data from the Office for National Statistics (ONS), down from 3.4% in December 2025 and marking the lowest rate in ten months.

That said, although the rate of inflation has fallen significantly from December, it still remains above the Bank of England’s 2% target.

A fall was largely expected by economists, however the drop from December’s 3.4% rate was a little more than expected. As a result of this, the number of expected interest rate cuts this year has increased to more than the two expected, causing the stock markets to begin pricing in the change.

 Generally falling inflation figures are good news for the economy. A falling inflation rate paves the way for increased interest rate cuts, which in turn should be good news for rising equity markets, lower mortgages, and higher employment rates. And with unemployment at 5.2%, the highest level in nearly five years, interest rate cuts will hopefully be welcome to many searching for jobs. 

Why is inflation falling? 

According to ONS figures, meat, motor fuels and airfares all played a pivotal role in bringing down inflation since December, partially offset by the cost of hotel stays and takeaways, which rose.  

Another significant influence on inflation falling over the last 12 months, is that the VAT increase to school fees last year, has now dropped out of the figures. 

Food inflation fell from 4.5% to 3.6%, an encouraging change considering how sticky food prices have been in the past few years, and the lowest in nine months.

Easing transport costs were an additional contributor, with air fares reversing December’s spike and petrol prices dropping by 3.1p per litre between December 2025 and January 2026. According to ING THINK, the research and analysis division of ING Bank, inflation is expected to continue to fall this year, and actually get down to the 2% target by the summer, although the April figures will be the big test, as important measures such as energy costs are repriced in that month.

As a result, it’s expected that the next base rate cut will occur next month at the Bank of England meeting on 19th March 2026, with another in June.

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affects the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

 Our chartered financial advisers are expert and unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch. 

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This article is for information only and does not constitute individual advice. 

Figures obtained from HM Revenue and Customs (HMRC) from a freedom of information request revealed that nearly 80,000 junior ISA (JISA) accounts used their full allowance during the 2023/24 tax year, higher than the amount seen in the previous four years.

This change marked a 41% increase compared to 2020/21 and a 9% increase from 2022/23.

It is the highest level of maximum contributions (£9,000 per year) recorded since before the coronavirus pandemic struck and reveals thousands of parents and grandparents opting to use all tax wrappers at their disposal.  

A total of £1.8bn was subscribed to JISAs in 2023/2024, with only about 36% going into cash. Whereas, 80% of the JISAs that were maxed out in full, were in stocks and shares accounts. This suggests that the 18-year time horizon and potential for tax-free growth appeals more to those potentially looking to pass on their wealth during their lifetime to the next generation.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest.  

What is a Junior ISA (JISA)? 

A Junior ISA (JISA) works in much the same way as a standard ISA, but it’s designed specifically for children under the age of 18. Parents or legal guardians can open and manage the account on a child’s behalf, saving or investing money for their future in a tax-efficient way. A JISA can be a cash account or a stocks and shares account. Any interest, dividends, or capital growth earned within a JISA is completely tax-free, just like with adult ISAs.

There is a separate annual allowance for Junior ISAs of £9000 which does not eat into the £20,000 adult ISA limit. Once money is paid into a JISA, it belongs to the child and cannot be withdrawn until they turn 18, at which point the account automatically converts into an adult ISA and the young person gains full control. In short, a JISA is a long-term savings option aimed at giving children a financial head start.

If you want to find out more or you are looking to pass on wealth to your family, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help.  

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash or tax advice. 

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.