Act now! Up to £50bn in Cash ISA savings could be earning nearly 3x more

Refresh your finances this new tax year to get your money working as hard as you do

With the economic landscape changing day to day, many savers and investors may be feeling unsettled and unsure what the future holds for their finances. As we begin a new tax year, taking stock of your finances isn’t just sensible — it’s essential to be sure your money is working as hard as possible for your future.

In uncertain times financial resilience is key and a healthy savings buffer is often the first line of defence. The start of the new tax year is the ideal opportunity to maximise your ISA allowance and making sure your cash is earning a competitive interest rate is one of the easiest and most impactful actions you can take.

Recent Moneybox analysis of CACI data, found that as of January 2025, a staggering £50 billion was sitting in 7.2 million Easy Access Cash ISA accounts earning 2% interest or less. That’s billions of pounds in hard-earned savings losing value in real terms, as inflation continues to erode the spending power of cash.

For example, at 2%, if you were to max out your annual ISA allowance of £20,000 you would earn £400 in one year.

That same £20,000 would earn £913 if deposited with the Moneybox Cash ISA (which pays 5.67% for the first three three months and 4.2% thereafter). That’s an additional £513 in interest.

Meanwhile, every Cash ISA provider listed in the Best Buy tables is currently offering a headline rate of 4% interest or more. Therefore, millions of people may be able to double if not triple the interest earned on their Cash ISA savings this year.

Brian Byrnes, Head of Personal Finance at Moneybox, says: “Now is not the time to be complacent with your finances. With inflation still a risk and market volatility causing concern, savers need to be proactive in building solid foundations for their financial future. The start of a new tax year is an ideal time to pause, take stock and see if there are any quick wins you could take advantage of – starting with your savings.

“One silver lining in recent years is that savers have benefited from far more competitive interest rates but we cannot take this for granted. Every day we see just how diligent and committed UK savers are when it comes to working towards their financial goals, but this data shows there is still work to be done. Many of us are guilty of letting our money languish in accounts that are no longer providing good value. The time to act is now.”

Step-by-Step Cash ISA Transfer Process

1. Find a better rate
   Research Cash ISA providers and choose one that you trust, offers a competitive rate and can help you achieve your financial goals.

2. Open your new ISA account
   Once you’ve picked a provider, open your new Cash ISA. Make sure you don’t withdraw funds from your old ISA.

3. Request the transfer
   Complete an ISA transfer form with your new provider. This gives them permission to contact your old provider and move your money over without affecting your current annual ISA allowance.

4. Let the providers handle the rest
   Your new provider will take care of the transfer. This usually takes 7- 15 working days, depending on the type of transfer.

5. Keep earning tax-free interest
   Once the transfer is complete, your money starts earning interest at your new, higher rate — and continues growing tax-free.