Skipton Building Society has today unveiled its new Annual Allowance Cash ISA, designed to encourage savers to make the most of their current year tax-free allowance.
Offering a 4.00% tax-free pa/AER, this account combines an attractive rate with easy access to funds, giving customers flexibility while maximising tax efficiency. The product is available exclusively for current-year ISA subscriptions.
Traditionally, many savers wait until the end of the tax year to use their ISA allowance. Skipton’s new ISA aims to change this behaviour by rewarding early action—helping customers save for longer and earn more tax-free interest throughout the year.
Why act now?
By moving savings into an ISA sooner, customers benefit from tax-free interest immediately, rather than potentially paying tax on interest earned in non-ISA accounts.
Alex Sitaras, Head of Savings & Partnership Products at Skipton Building Society, commented:
“We’re delighted to introduce the Annual Allowance Cash ISA to our range. This competitive rate gives customers a great opportunity to start benefiting from their tax-free savings now, rather than waiting until April. With the recent Budget announcement and planned changes in April 2027, we’re encouraging savers to make full use of their full £20,000 cash ISA allowance in the current tax year and next, before the reductions come into force in April 2027.”
Customer sentiment
A snap poll of 563 Cash ISA holders commissioned by Skipton revealed strong reactions to the Chancellor’s announcement:
- 67% reacted negatively to the proposed changes.
- 73% believe the move reduces the benefit of having a Cash ISA.
- 53% feel it’s unfair on those who planned around the existing £20,000 cap.
- 44% expect to rethink their savings behaviour, with some shifting to investments or workplace pensions.
Key Features
- 4.00% tax-free pa/AER
- Pay in up to your annual ISA allowance each tax year (£20,000 for 2025/26,
- Current-year subscriptions only – no ISA transfers from other providers or previous years.
- Open and manage via App, Online, Phone, Branch, or Post.
- Easy, flexible access to your funds.
