UK government reduces cash ISA limit for under-65s to £12,000

The UK government will cut the amount younger savers can put into cash ISAs each year. From April 2027, people under 65 will only be able to save £12,000 per year in a cash ISA, down from £20,000. Older savers will keep the full £20,000 limit. The total ISA allowance stays at £20,000 for everyone, so under-65s can put the remaining £8,000 into investment accounts instead. The government also says younger savers cannot move money from investment ISAs into cash ISAs. The rules are designed to push younger people towards investing rather than just saving cash. In 2022-2023, about one in five cash ISA users under 65 saved more than £12,000 a year.