Best Cash ISA paying customers £870 before any limit rules change

A market leading Cash ISA is currently offering customers £870 interest if they max out their £20,000 limit. Cynergy Bank is offering a one-year fix at a rate of 4.35% AER, making it the best on the market at the moment right now for a fixed Cash ISA. Customers need to pay in a minimum deposit of £500 to open the account and the interest is paid at the end of the 12 months. So if you put £20,000 into the account it would pay out £870 interest after 12 months.

Cash ISAs currently allow you to pay in a maximum of £20,000 in a single tax year - which runs from April 6 until April 5 the following year - and you never have to pay tax on the money that you put in. It means up to £20,000 of savings will be free of income tax and capital gains, and you can earn hundreds of pounds of interest.

While savers have up until April 5, 2026, to deposit up to £20,000 of savings into a Cash ISA, financial experts recommend putting cash into an ISA early on in the financial year as this allows your savings to grow tax-free for longer, helping you to maximise returns.

Earlier this year, Chancellor Rachel Reeves was reportedly considering implementing a tax-fee allowance of just £4,000 on Cash ISAs - a fifth of its current amount - to encourage more people to put money into investments.

Reeves has since insisted the £20,000 limit will stay in place, although she hasn't clarified if this limit will stay in place for Cash ISAs specifically.

Treasury costings documents released with the spring statement assume the overall ISA limit of £20,000 remains in place up to and including 2029/30.

Ms Reeves told the BBC: "I'm not going to reduce the limit of what people can put into an ISA but I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings.

"And at the moment, a lot of money is put into cash or bonds when it could be invested in equities, in stock markets and earn a better return for people.

"And so, one of the reasons why we're looking at advice and guidance that financial firms can give to their customers is to make sure that people are making informed decisions about how to invest their money, whether that's their pension savings, or their ISA savings.

"So those are things that we're looking at, but I absolutely want to preserve that £20,000 tax-free investment that people can make every year."