Best Cash ISA to open before April 6 to save £40,000 tax-free | Personal Finance | Finance
Savers have just weeks left to make the most of tax-free interest on savings before the start of the new tax year on April 6.
Despite the changes announced for Cash ISAs for 2027, the limits for the coming tax year remain unchanged. It means that adult savers can put up to £20,000 into a Cash ISA within the current tax year, and savings will be free of income tax and capital gains. But savers only have until April 5 to capitalise on this year’s allowance, so if you haven’t opened a Cash ISA yet, it’s well worth considering before the new tax year starts.
According to MoneySavingExpert (MSE), Trading 212 is currently the top-paying Cash ISA for new customers, offering up to 4.43% AER. This includes an underlying 3.6% AER variable rate plus a 12-month 0.83% AER fixed bonus, but the top rate only applies to new money you pay in and transfers of cash deposited in the current tax year.
If you transfer money from another ISA deposited in previous tax years, you won’t get the 0.83% bonus and will just earn 3.6% AER instead.
The account is only available to new customers and can be opened online or via the Trading 212 app with a minimum deposit of £1.
But the maximum amount you can deposit in a single tax year is £20,000, so if you have a big chunk of savings, it’s worth opening the account and paying in some money before April 6 to make the most of the tax-free interest.
Then, if you deposit another £20,000 after April 6, you’ll immediately have £40,000 saved completely tax-free, with no tax due on the interest generated in the future.
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Trading 212 said: “Individual Saving Accounts (ISAs) let you save tax-free. Deposit up to £20,000 each tax year and earn tax-free interest.
“Earn 4.43% AER variable. Earn every day. Withdraw anytime. Includes a bonus of 0.83% for the first 12 months only for current tax year contributions.
“Our interest rate changes in line with the Bank of England’s (BoE) base rate minus 0.15% (variable tracker rate). For example, your Cash ISA interest rate will be 4.10% AER when the BoE base rate is at 4.25%.
“Earn interest on your entire cash balance, big or small. One rate for all. Your cash is always free to use. Withdraw anytime without any impact on your interest rates. Your interest accumulates daily and is paid monthly, maximising your earnings.”
