Savers have only a few days left to make the most of their allowances before the new tax year starts on April 6. The annual contributions limit for Isas will remain frozen in the 2023/24 tax year at £20,000.
According to financial information website Moneyfacts, cash savings rates have been improving in recent months. It said the average easy access Isa rate breached two per cent in March and, at 2.01%, was at its highest point since February 2009 - in March 2022, the average easy access Isa rate was just 0.30%.
For people able to lock their money away, the average one-year fixed-rate Isa on the market paid 3.56% in March this year. Alice Haine, a personal finance analyst at investment platform Bestinvest, said: “Those opting for an investment Isa don’t need to panic if they need more time to make an investment selection before the end of the tax year.”
