Could this ISA season be one of the most competitive yet?

The 2025/26 tax-year is one of the final opportunities for savers to stash up to £20,000 in cash ISAs.

The weeks leading up to the end of the tax-year (on 5 April) are often a popular time for savings providers to improve rates and launch attractive new deals, however, this year’s ISA season could become one of the most competitive to date.

Banks and building societies usually work hard throughout March and April to entice deposits from savers looking to ‘use or lose’ any remaining ISA allowance before it automatically resets once the new tax-year begins (on 6 April). But, with 2025/26 one of the final years those under 65 can put away up to £20,000 in cash ISAs (before the limit gets slashed to £12,000 from April 2027), it could prove even more important for savers to maximise contributions – a fact that providers may look to capitalise on.

While typical savings rates have come down significantly over the past 12 months, there has already been a notable uptick in some of the top returns since the start of this year. The best easy access cash ISA rate, for instance, has risen from 4.31% (gross) in January to pay more than 4.60% today, according to latest analysis by Moneyfactscompare.co.uk.

When can I find the best ISA rates?

“With the new tax-year fast approaching, many savers may feel the pressure to choose an ISA before the deadline,” recognised Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk. She said anyone who has been “waiting on the sidelines” may want to act now, “especially those [who] still have some remaining cash ISA allowance from the 2025/26 tax-year”.

However, Eastell reassured those looking ahead to when their allowance refreshes on the 6 April that competitive rates can sometimes still be found in May. In fact, the tail end of ISA season is historically when “some of the strongest deals have emerged,” according to Eastell. Furthermore, with the ongoing conflict in the Middle East drastically altering the economic outlook, she explained that this could see interest rates stay inflated for longer.

Nevertheless, it’s crucial to strike a balance when waiting to secure a decent return.

“Savers who have left their money in the same account are being hit with a serious loyalty penalty,” warned Eastell, adding that “the average closed easy access ISA rate pays just 2.51% AER”. Compared to the best rates currently available, this could amount to a loss of over £400 over the course of a year (based on a £20,000 balance).