Savers put £5.1bn into cash ISAs in November, according to the latest data from the Bank of England
Savers put £5.1bn into cash ISAs in November, following Budget concerns about the future of the annual allowance.
It was the second highest ever monthly boost to cash ISAs outside of the tax year rush in April.
The biggest monthly boost outside tax year end was in July 2015, when the cash ISA limit was almost trebled from £5,760 to £15,000.
Savers were keen to make the most of their annual allowance ahead of the Budget, which on 26 November announced a cut to the annual cash ISA limit of £12,000 for all savers under the age of 65 from April 2027.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Savers showed their passion for cash ISAs in November, as concerns about the future of the annual allowance drove £5.1 billion into them.
"It was the second biggest monthly boost outside of April since cash ISAs were introduced. The good news is that there’s still time to take advantage of your £20,000 cash ISA limit in the current tax year and the next one.
“However, after that, those aged 65 and over will keep their £20,000 limit, but younger people will see it cut to £12,000. It means savers will be on the lookout for alternative tax-efficient savings, and there are a few options to consider.”
Ian Futcher, Financial Planner at Quilter, noted that other savings products also saw a boost in November.
He said: “The rumour mill had been in overdrive in the lead up to the budget, and those surrounding Rachel Reeves’ ISA changes seemingly spurred more people to pile money into their savings. Households deposited an additional £8.1bn with banks and building societies in November, up considerably from £6.7bn in October.”
Some savers may be regretting their decisions it seems. Nearly one in four adults (23%) said they made changes to their finances due to Budget speculation, according to a survey for wealth manager St James’s Place. One in five people (20%) say they now regret at least one of the actions they took.
Around one in five (21%) of those surveyed said they had made adjustments to their ISAs ahead of the Budget, with one in ten (10%) of those who modified their ISA arrangements feeling they had acted too soon.
