UK Savers Urged to Maximize ISAs Amid Changes

Amidst speculation that UK Chancellor Rachel Reeves may reduce or eliminate tax breaks on Cash ISAs, financial experts are urging savers to act before potential changes occur. Currently, savers can deposit up to £20,000 annually into ISAs tax-free, but there are discussions to limit Cash ISA contributions to £4,000, which could push savers toward higher-risk Stocks and Shares ISAs. Savers are encouraged to maximize their tax-free allowances before the fiscal year-end on April 5, as £300 billion lies dormant in non-interest-bearing accounts, losing value due to inflation. With the Bank of England's interest rate reductions, savers are advised to secure high rates promptly. Experts also recommend regular savings practices, such as monthly transfers, to enhance savings growth despite potential changes to Cash ISAs.