December saw £5.2bn paid into Cash ISAs, new figures released by the Bank of England (BoE) have shown, a record for a non-tax year end month.
This followed the decision announced by the Chancellor in her Budget to cut the Cash ISA tax-free allowance from £20,000 to £12,000, a change due to come into force in April 2027.
Across the whole of 2025, Cash ISAs had a record year with a total £57bn paid into accounts, the largest year for annual inflows since the rise to the £20,000 allowance in 2017, according to the central bank’s data.
The BoE’s latest Money and Credit report also showed that December saw savers pay more into Cash ISAs than into easy access accounts paying interest (£5.1bn). Savers also withdrew £1.8bn from easy access accounts paying no interest, and £100m from fixed rate accounts.
Director of personal finance at AJ Bell, Laura Suter, said that speculation about the future of Cash ISAs ahead of last year’s Budget had boosted inflows.
“There’s no doubt that the rumours around Cash ISAs being cut and the eventual decision to slash the Cash ISA allowance for under 65s in last year’s Budget will have meant more people rushed to use the accounts, despite the fact the cut won’t happen until April 2027,” she commented.
“Inflows to Cash ISAs in December 2025 were 47% higher than the same month a year earlier, showing the Reeves effect on the accounts. The £5.2bn paid into Cash ISAs in December last year is the highest non-tax year end month for inflows ever, closely followed by November’s inflows.
“Cash ISAs’ popularity isn’t likely to go anywhere in 2026, as more people will stuff the accounts before the allowance is cut in 14 months’ time.”
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