The exact date a cash ISA change could be coming has been revealed. The Cash ISA market is much bigger than the end of the last tax year and there are 18% more products available for consumers to choose from this year.
Savers are told there are six new providers for savers to look at - nearly all app-based or savings platforms. Cash ISA rates could start to be made less appealing if rumours that the Labour Party government want to make investment products more appealing are true.
New data from financial ratings company, Defaqto, has revealed how many more options there are now for savers, compared to what you would have found last year. Over 400 Cash ISAs are now available and six new providers have launched within the last 12 months.
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Those new to the market are mostly app-based or savings platforms - a third-party service that lets you access multiple savings accounts from banks and building societies but in one application. These include savings platform Hargreaves Lansdown Active Savings, and app based Monument Bank, Plum and Tembo.
Katie Brain, Banking Expert at Defaqto said the rise in Cash ISAs is good news for savers as it's creating rate competition, but people should also consider what they need in an ISA alongside the rate. Katie said: "You need to carefully consider how you want to access your money, including whether you are happy to use a mobile app to operate your account.
"Several of the market-leading Cash ISA products also have a 12-month bonus so the interest rate will drop. There can also be limitations on how many withdrawals you can make so check the terms and conditions to find one that's right for you."
Katie said: "The Government is currently reviewing Cash ISAs and it's rumoured that they could start to make them less appealing in order to push people towards investment products instead. These changes could impact savers, such as reducing the amounts you can put in a Cash ISA."
Labour Party Chancellor Rachel Reeves is due to make a spring statement on March 26, where it is thought she would announce any Cash ISA changes.