"Cash ISA deposits to banks and building societies increased by 29% month on month to £4.2bn nationally. It's also higher year-on-year by 13%, despite interest rates being lower. Plum's own data shows that Cash ISA account opens are up by 42% last week compared to the previous week. The speculation about the reduction to the Cash ISA allowance is likely to have been a driving factor behind this, with many wanting to take advantage of the £20k allowance while it's still there."
"The Chancellor has now confirmed her ISA reforms. While it's a small saving grace that people have until April 2027 to adjust to the changes, it appears from the latest HMRC guidance that the Government is determined to prevent even cash-like funds being held within a Stocks and Shares ISA. How this will be managed remains to be seen, especially when many people will use these funds, such as Money Market Funds, when they want to take some time to consider their next investment steps."
Cash ISA deposits to banks and building societies increased 29% month-on-month to £4.2bn and are 13% higher year-on-year despite lower interest rates. Plum's data shows Cash ISA account openings rose 42% week-on-week. Speculation about a reduced Cash ISA allowance prompted many savers to use the £20,000 allowance before changes. The Chancellor confirmed ISA reforms, with transition until April 2027, and HMRC guidance suggests the Government will prevent cash-like funds from being held within Stocks and Shares ISAs. Tax threshold freezes to 2030-31 and higher income tax on savings outside ISAs increase fiscal drag and risks to savers.
Read at London Business News | Londonlovesbusiness.com
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