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Advice on Cash ISAs

ended 04. July 2025

The Express are keen on any Cash ISA stories, any advice or any tips you may have for people with Cash ISAs, or thinking of getting a Cash ISA. Or any alternatives to Cash ISAs.

Rachel Reeves is set to announce plans later this month to cut the annual allowance for Cash ISAs from £20,000 to £10,000 in a push to encourage people to invest more in stocks and shares.

It is expected the chancellor will unveil the measure in her Mansion House speech, which takes place on July 15.

  • What advice do you have for someone with a Cash ISA? Or is thinking of getting one?
  • Are there any alternatives to Cash ISAs that are more effective?
  • What should they do with Rachel Reeves set to slash the limit from £20,000 to £10,000?
  • Any other tips or tricks or intel on Cash ISAs please let us know.

Answers by 8am tomorrow please.

7 responses from the Newspage community

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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
If this happens it feels like a sly tax grab as I suspect people will end up holding more cash in regular bank accounts and paying tax on their interest. When thinking about an ISA most people only think of cash ISAs but investment ISAs have been around for years and can work really well. If you can tolerate seeing the value of your savings moving up and down then an investment ISA could be the answer. If you are looking for something shorter term or don't want the investment risk, then premium bonds could be a solution for a couple of years until you reach the £50,000 limit.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Those sitting with large balances in Cash ISAs should ask themselves, is this the best home for my money? If they don't need relatively easy access to the funds, they should explore their wider options themselves or with the help of a qualified adviser. Just because the ISA wrapper is tax-efficient, you should still look at the underlying asset class. Cash is still cash.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Building up an ISA fund is a great strategy because you can use it for capital expenditure in the future or to create a tax-free income in retirement. Cash is not always king though, and if you aren't planning on spending your savings in the next 5 years you should transfer your ISA to an investment ISA. Don't forget to use your Lifetime ISA each year, as long as you use it for retirement, as the government give you a 25% bonus. That, along with the tax free income, make these more beneficial than a pension as a retirement option.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
Cash is unquestionably an important part of any proper financial plan. However, over the longer term, as prices rise year-after-year, cash is realistically not going to keep its buying power. Think about how much the price of a stamp has gone up over the years to illustrate the point!

The government are therefore looking for ways to encourage people to make their money work harder for them; which generally means considering investing into things like company shares or property for example. In the UK, compared to people in Europe and the US, we're generally savers rather than investors.

However, this move by Rachel Reeves could be a heavy-handed way to get the outcome she is looking for, and could push cash savers into the arms of unscrupulous, unregulated companies promising sky high returns with no downside. There is no such thing - see the various "mini-bond" failures over the past few years.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
If Rachel Reeves thinks halving the Cash ISA allowance from £20,000 to £10,000 will push savers into riskier assets, she’s not wrong. She's just a decade late. With inflation still stubbornly high and Cash ISAs yielding little more than glorified piggy banks (even at 4%), savers have already been quietly adjusting course. A Stocks and Shares ISA offers tax-free growth, dividend shelter, and historical long-term returns of 6 to 8 per cent, so why not use it?

Cash ISAs belong in the same drawer as Premium Bonds and ‘safe as houses’ clichés. Fine for emergency savings, but useless for real capital growth. The serious saver puts £10,000 in cash for the rainy day and sends the rest to work,whether in equities, REITs or a well-managed Lifetime ISA.

Cutting the allowance is less “punishment” and more reality check. Money was never supposed to sit idle gathering dust. As every developer knows, it’s a capital economy. Either your money builds or tomorrow, you’ll be paying someone else’s rent.
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David Belle
Founder and Trader at Fink Money
If people are desperately wanting to hold cash, they should open a stocks and shares ISA and buy a money market fund instead. At least this way they then have the option of investing into stocks and shares which will provide a greater return over time
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Sean Horton
Managing Director at Respect Mortgages
Not sure that reducing the allowance will suddenly spur people to invest in to stocks and shares. They could do that now if they wanted to.

This move makes it difficult for savers with a low attitude to risk who want tax efficient cash savings.

If you already have cash ISAs then there's no need to do anything. But if you havent used your cash ISA allowance this year then time is ticking...