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Savers who want to make the most of this year’s cash Isa allowance are being urged not to leave it to the last minute, as the deadline for applications falls on the Easter weekend.

The Isa wrapper allows people to save or invest money and benefit from the returns free of tax. Each tax year, people can pay in up to £20,000, which can then be moved around in subsequent years without the tax benefits being lost.

In April 2025, £14bn was paid into cash Isas – the highest total monthly since April 1999 – and this year there could be more, fuelled by changes to allowances.

For anyone under 65, the limit on how much can be held in a cash Isa will be cut after this tax year, from £20,000 to £12,000. Although it is more than many people hold in the accounts, there is likely to be a rush from wealthier savers wanting to use the full allowance before it is taken away.

The deadline for money to be paid in for this tax year is 5 April, which is Easter Sunday.

Anna Bowes, personal savings expert at The Private Office, said savers who want to use their allowance “need to get a move on as Easter is right in the midst of the end of the tax year and some providers will withdraw their offerings early anyway, to ensure they can process everything before the deadline”.

She added that savers would find good rates of interest on offer. “A combination of being right in the thick of the Isa season, plus the conflict in the Middle East raising expectations of a base rate hike, means that, in many cases, the top cash Isa rates are currently paying more than they have for almost a year,” she said.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, a comparison website, said savers should not leave it too late to get their Isa set up or they risked losing the chance to use this year’s allowance.

She added: “Isas season has seen a flurry of activity in the top rate tables. Some of the best deals are from challenger banks and building societies, so it’s worth looking beyond the big high street banks.”

Best-buy tables from Moneyfacts and the Private Office show that fixed rates of about 4.45% are available for savers willing to lock up their money. Close Brothers Savings, Furness building society and Vida Savings all have a range of fixed-term accounts paying that rate or just under.

For variable-rate Isas, where interest rates could go up or down, Plum is offering 4.66%, and Tembo Money is paying 4.55%, both including a bonus for the first 12 months. Most of these providers are online only.

The decision to reduce the cash Isa allowance for those aged under 65 was announced in last year’s budget and is designed to encourage younger savers to consider investing in the stock market.

Recent research by Aldemore bank found that 51% of people were unaware of the changes, but among over-55s there was concern that the new rules would make it harder for people to build up money for retirement.