Ahead of the expected rush to top up ISA allowances before the end of the year, Nottingham Building Society shares its top considerations to ensure that savers make the most of the opportunity to put thousands of pounds away tax-free before the 5 April deadline.
Online searches for ‘ISAs’ peak at the beginning of April, according to Google Trends data, and the mutual has revealed it has seen the number of new Cash ISA accounts rise by 333% between January and April 2025, while balances increased by 317%.
According to Nottingham Building Society, these figures reinforce how important it is that savers act early rather than wait until the last minute.
Key considerations for ISA season:
- Make full use of your tax-free allowance
For savers under 65, this year and next year are the last chances to make use of the £20,000 Cash ISA allowance before the cap drops to £12,000 in April 2027. First-time buyers who are thinking about long-term savings options sometimes make use of a Lifetime ISA (LISA), which offers a 25% government bonus and can significantly boost long-term savings.
- Act early – don’t leave it to the last minute
ISA season sees a surge in activity in the weeks leading up to April. Activity typically peaks in the final days before the deadline, and higher volumes can occasionally lead to processing delays across the industry. Many savers therefore choose to make contributions earlier in the season to avoid potential last‑minute bottlenecks. Leaving plenty of time will guarantee that everything is processed and sorted in good time.
- Choose the right ISA product for your financial goals
Cash ISAs are commonly used for short- to medium-term goals because they offer security and predictable returns. Fixed‑rate ISAs offer a set rate for a fixed term, while variable or easy-access ISAs provide more flexibility. The best approach depends on an individual’s circumstances and preferences. Choosing a product that matches your personal goals is more important than following interest rate trends.
- Understand how different ISA types work
Some savers review their mix of ISA products ahead of the tax‑year deadline. For those considering Stocks & Shares ISAs, it’s important to be aware that the value can go down as well as up. Decisions about investment products typically reflect a person’s own risk tolerance, timeframe, and financial goals.
- Understand withdrawal and transfer rules
Mistakes occur when people don’t fully understand how withdrawals, transfers or access limits work between ISA products. Planning ahead helps ensure that transfers or access requests are processed smoothly, particularly during busy periods.
Harriet Guevara, Chief Savings Officer at Nottingham Building Society, said:
“ISA season carries extra importance this year, because it is the penultimate opportunity to make the most of the £20,000 tax-free Cash ISA allowance before it drops to £12,000 in April 2027 for under-65s.
“We know there will be many people looking to top up or open a new product. However, based on patterns we see each year, many savers choose to act early to avoid seasonal bottlenecks. Waiting until just before the deadline opens up the risk of hitting a technical or process delay and can make it harder to take the time needed to choose the product that best fits their circumstances.
“More broadly, this seasonal surge in activity is a reminder that Cash ISAs are important to millions of hard-working individuals and families who value the option of using them to support their financial goals. Three fifths of our fixed-rate ISA customers used the full £20,000 allowance last financial year, and among those saving in-branch, that figure rose to 65%.
“We support the government’s ambition to get more people investing, but simply cutting the cash allowance won’t do it. Better financial education is critical, giving people the option to save or invest in a way that fits their goals and risk appetite.”
