The ‘wait-and-see’ approach “could come at a big cost”, they are warned.
Savers are quickly running out of time to make the most of any remaining ISA allowance, as the start of the next tax-year is now less than three months away. And, with 2026/27 the last year those under 65 can put away up to £20,000 in cash ISAs, it could prove all the more important to maximise your contributions.
While optimistic savers may be tempted to stall their search until March or April (when competition in the ISA market traditionally heats up), Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, warned the ‘wait-and-see’ approach “could come at a big cost”.
The average returns on an easy access and notice ISA have dropped by 0.02 and 0.06 percentage points, respectively, to 2.69% and 3.34% since the start of December and January, according to the latest Moneyfacts UK Savings Trends Treasury Report. Furthermore, it found the typical rate paid by a one-year and longer-term fixed ISA fell by 0.06 and 0.04 percentage points, respectively, to 3.79% and 3.75% over the same timeframe. If forecasts for interest rates to come down further this year are to be believed, it could be we see returns continue to tumble.
