Anyone with Cash ISA urged to make deposit now

Anyone with a Cash ISA has been urged to make a deposit now to use any remaining allowance before the new tax year.

A Cash ISA allows holders to deposit up to £20,000 of tax-free savings each tax year. However, research shows that a significant number of people in the UK have yet to use all of their allowance.

According to Tesco Bank's research, Cash ISA holders have used on average just over £8,000 (£8,129) of their ISA allowance this tax year, which means millions of people have more than £11,000 (£11,871) to use before the tax year deadline.

On top of that, banking companies also found that 11% of Brits have not contributed anything at all to their Cash ISA this financial year, while only one in five people have used their full allowance, which ends in April.

Savers will also be able to save up to £20,000 in the next tax year, before the allowance limit reduces to £12,500 for those under 65 in April 2027.

Chris Henderson, save and pay director at Tesco Bank, said: "Cash ISAs are a great way to save. They allow you to pocket your interest entirely tax-free, which could help you achieve your goals sooner.

"Whether you're saving for a onceinalifetime holiday, home renovations, or for one of life's milestones, ISAs are worth considering.

"It's encouraging to see so many have already maxed out their allowance, and with several weeks left to go until the deadline, many others are continuing to make use of their ISAs."

The research shows that a large number of people are using their cCsh ISAs, with 43% of holders making regular contributions, and 50% of people saying they contribute to their Cash ISA using funds from other savings accounts, making sure to take advantage of the tax-free element it offers.