Coventry Building Society has issued a "wake-up call" warning to millions of savers
British savers deposited a remarkable £4.6billion into cash ISAs during February, Bank of England figures reveal, marking one of the strongest months on record for tax-free savings.
This surge followed an equally impressive January, resulting in the most robust start to any calendar year for cash ISA deposits.
The amount flowing into tax-free accounts was more than twice the £2.2bn placed in taxable easy access savings during the same period.
Coventry Building Society has issued a warning to savers
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Since Chancellor Rachel Reeves revealed plans to reduce Cash ISA limits for those under 65 from April 2027, approximately £20billion has been deposited into these accounts since November, demonstrating how highly UK households value their tax-free savings options.
Jeremy Cox, the head of Strategy at Coventry Building Society, commented on the figures: "Savers are in no mood to hand over more tax than they have to.
"Since the Chancellor announced changes to cash ISA limits, we've seen an extraordinary rush from people determined to lock in their tax-free benefits."
He added: "Many have moved early this year to secure their tax-free entitlement before April 5. For some, the planned cut to cash ISA limits for under-65s from April 2027 has been a wake-up call to use the full allowance while they still can."
The ISA deadline is only days away | GETTY LATEST DEVELOPMENTS
Examples of tax free Isa earnings in the UK if you had £20,000 in the Isa | GBNWith Easter Sunday coinciding with the tax year's final day, the timing creates particular urgency for those yet to act. Mr Cox warned that despite the early rush, millions of people still face the risk of running out of time.
He shared: "But millions still risk leaving it to the wire. With Easter Sunday falling on the final day of the tax year, savers only have days left to use their £20,000 ISA allowance – a firm 'use it or lose it' deadline and many won't want to spend the long weekend scrambling to sort it."
Furthermore, Mr Cox urged savers to take action now, noting that interest rates on savings products have improved in recent weeks.
The savings expert noted: "Savings rates have strengthened in recent weeks, driven by fierce competition through peak ISA season and shifting expectations around the Bank of England base rate.
High street banks are looking for ways to entice new customers | GETTY"And with market volatility continuing, we could see more people turning to the certainty of cash, keeping demand for competitive deals strong."
Ahead of the upcoming ISA deadline, Coventry Building Society has launched two new fixed-rate ISAs for existing members.
The building society is offering tax-free returns of 4.35 per ecnt until September 2027 and 4.40 per cent until September 2028, with the full £20,000 allowance available for the 2026-27 tax year.