Britons under 65 are being urged to act fast, as this year marks the final opportunity to use the full £20,000 cash ISA allowance before it is reduced.

With the new financial year now underway, savers have a limited window to take advantage of the current tax-free limit. From next April, the cash ISA allowance for those under 65 will drop to £12,000. However, savers will still be able to invest an additional £8,000 in stocks and shares ISAs, keeping the overall £20,000 limit intact for investment-based options.

Catherine Wray, head of saving at Leeds Building Society, confirmed the upcoming change, noting that only those aged over 65 will retain the full cash allowance. She explained that the move is designed to encourage more people to shift towards investing, although cash savings will continue to play an important role.

She also highlighted that the start of a new tax year is an ideal time for individuals to review their financial plans, reassess their goals, and ensure they are making the most of available tax-efficient options.

Meanwhile, Michelle Holgate, director and wealth manager at RBC Brewin Dolphin, described the upcoming 40% cut in the cash ISA limit as a significant shift in the UK’s savings landscape. Despite its impact, she warned that many savers remain unaware of the change, with recent research suggesting that half of them do not know the reduction is coming.