The Money Saving Expert has urged savers to “use it or lose it” before the tax year ends on April 5
The Money Saving Expert has urged savers to “use it or lose it” before the tax year ends on April 5
Fiona Callingham Lifestyle writer
05:30, 14 Mar 2026
Martin Lewis has issued an urgent £20,000 reminder to savers, warning them to “use it or lose it”. The money-saving guru was drawing attention to the ISA allowance as the 2026 tax year draws to a close.
An Individual Savings Account (ISA) allows individuals to set money aside whilst earning tax-free interest. Nevertheless, there’s an annual limit on the amount that can be deposited into an ISA.
Currently, this ceiling is set at £20,000 for 2025/26, with the fresh tax year commencing in April. Although the limit is anticipated to remain the same for the following year, savers have until April 5 to make the most of this year’s allowances.
Writing on his Money Saving Expert (MSE) website, Martin highlighted that ISA interest rates are amongst the most attractive on the market. He stated: “Your money’s nicer in an ISA, and now it’s use it or lose it time! Top cash ISAs pay 4.68 per cent, beating normal savings, though long-term shares ISAs are likely the winner.”
He continued: “The tax year, and thus the ISA year, ends on 5 April. Though it’s best not to leave it to the last minute as some providers shut their (virtual) doors early. If you don’t use this year’s allowance, you lose it. The good news, though, is providers, as normal, are ramping up deals this time of year while the focus is on ISAs.”
Every tax year, each adult across the UK is granted a £20,000 ISA allowance to put money aside tax-free in either a cash ISA or a shares (investment) ISA. “You can have all £20,000 in one, or split it across both types,” Martin clarified.
To demonstrate the distinction between ISAs and standard savings accounts, Martin employed a cake comparison. He said: “Picture a cake, let’s say a chocolate cake for cash savings (though it could equally be a strawberry cake for shares). Normally it’s just sitting there, so the tax collector can come and take a bite.
“But think of an ISA wrapper like a protective piece of clingfilm you can wrap around some of the cake. Once your cash is inside, nothing changes – the cash in savings is still cash in savings (so a cash ISA is just a savings account) and the shares are still shares (so a shares ISA is just an investment account). The only difference is… now the tax collector can’t eat any.”
In Martin’s view, the essential points to grasp about ISAs are:
- Your ISA allowance cannot be carried forward, which means April 5 represents the last chance to make the most of this year’s allocation. After that date, it disappears
- A new ISA allowance begins on April 6. In simple terms, if you haven’t used your ISA this tax year and have enough money available, you could pay in £20,000 straight away, then another £20,000 on 6 April (using next tax year’s allowance)
- Even if you don’t have the means to maximise next year’s allowance, as long as it works for your situation, put the money in now in case extra funds become available next year
- Once money is saved within an ISA, it stays tax-free year on year. The limit only applies to new contributions in each tax year
- There’s no overall limit on ISA savings. Some savers now have £100,000s in cash ISAs, having built up multiple years’ allowances, whilst some shares ISA investors have become millionaires
Changes for 2027
From April 6 2027, the annual Cash ISA limit for those under 65 will fall to £12,000 as part of a new two-tier system designed to encourage investment. Whilst the overall ISA allowance will stay at £20,000, the remaining £8,000 must be put into Stocks and Shares or Innovative Finance ISAs.
