Monzo has issued a time-sensitive warning to any customers with Individual Savings Accounts (ISAs). The bank has advised customers that they need to act swiftly if they want to any remaining ISA allowance for the 2025 to 2026 tax year.
A banner on Monzo’s website reads: “20 days left to use your ISA allowance.” The alert refers to the £20,000 limit on savings in ISAs for the tax year, which runs from April 6 to April 5. GOV.UK explains: “Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts.”
The £20,000 total can be split across the four types of ISA: cash ISA, stocks and shares ISA, innovative finance ISA, and Lifetime ISA, but you can only pay into one Lifetime ISA in a tax year, and the maximum is £4,000. People do not pay tax on interest on cash in an ISA, or income or capital gains from investments in an ISA.
As Monzo pointed out to customers, the deadline is just around the corner. While the cap is expected to remain unchanged, there are only a few days left for people hoping to maximise this year’s savings allowance. The allowance cannot be rolled over; the new ISA allowance becomes available on April 6.
Martin Lewis previously issued a ‘four-week ISA deadline warning’ in his Money Saving Expert newsletter. He wrote: “Your money’s nicer in an ISA, and now it’s use it or lose it time! Top cash ISAs pay 4.68%, beating normal savings, though long-term shares ISAs are likely the winner.”
The MSE founder continued: “The tax year, and thus the ISA year, ends on 5 April. Though it’s best not to leave it to the last minute as some providers shut their (virtual) doors early. If you don’t use this year’s allowance, you lose it. The good news, though, is providers, as normal, are ramping up deals this time of year while the focus is on ISAs.”
In the email, Martin also answered common questions, with one asking whether it is still worth opening a cash ISA if you won’t use the full £20,000 allowance. The answer said: “It’s just a savings account you don’t pay tax on.
“So if the rate is higher than normal savings, even if you won’t pay tax on interest, then put what you have in there. Another reason is in case you come into more money in future, you’ve got more room to protect that too.”
You can open an ISA from banks, building societies, credit unions, and more. To open an ISA, you must be 18 or over. If you’re opening a Lifetime ISA, you must also be under 40. You must also be either:
- resident in the UK
- a member of the armed forces or a Crown servant or their spouse or civil partner if you do not live in the UK
More information is available on GOV.UK.
