Bank account shake-up will come as a blow to savers
10:32, 01 Aug 2026Updated 15:50, 01 Aug 2026
Andy Burnham with new Chancellor John Healey.(Image: Getty Images)
New bank account rules planned to come into force next year will impact millions of savers.
The £20,000 tax-free ISA rate will be cut to £12,000 from April 2027, under measures announced by the previous Chancellor Rachel Reeves.
This will impact working-age households under 65s, with pensioners being protected from the changes.
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It appears these rules will still come into place under Andy Burnham and new Chancellor John Healey.
Savers aged under 65 will only be able to put up to £12,000 into cash ISAs.
This will impact households with ISAs which currently have over £10,000 in them.
Working-age savers are being advised to make the most of the current rate before new rules come into force next April.
These savers will still be able to put the other £8,000 in stocks and shares accounts – though any interest earned on these accounts will be hit with a 22% charge.
The aim is to boost the economy by encouraging more investment in stocks and shares.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “From April 2027, the annual cash ISA allowance will be cut from £20,000 to £12,000 for those under 65, while the overall ISA allowance will remain at £20,000.
“Older savers will retain the full £20,000 cash allowance.”
Money Saving Expert explained: “Savers who hold cash inside stocks and shares ISAs will be charged 22% on any interest earned on that cash from 6 April 2027, the Government has confirmed.
“The charge is designed to stop people using investment ISAs as a workaround to hold cash when the cash ISA limit is cut from £20,000 to £12,000 a year for under-65s from the same date.”