We only use cookies for website functionality and security.

Savers target early ISA cash savings as average deposits increase

Savings ISA.jpg

  • 46% of cash ISA savers target early tax year investment
  • Paragon records 40% jump in new tax year cash ISA applications during first week of new tax year
  • Average fixed rate cash ISA balances deposited increase by 45%

Nearly half of active cash ISA savers are seeking to invest early in the new tax year to take advantage of the tax-free wrapper, Paragon Bank research has revealed.

A Paragon Bank survey of over 1,600 active cash ISA savers revealed that 46% prefer to invest their money early in the tax year to fully protect it from tax.

The research showed a further 26% will spread their investment across the year, with 5% leaving it just before the end of the tax year to open their ISA account. The remaining 23% utilise a mix of the above methods.

Paragon has seen a surge in cash ISA savers moving early, experiencing its busiest-ever week for cash ISA applications as the new tax year started. Total ISA applications from 6 April were 40% higher than the corresponding seven days in 2023 and a record overall.

Paragon’s own savings data also highlights that savers are making more use of their subscriptions early. The average balance deposited in Paragon fixed-rate cash ISAs during the week following 6 April was 45% higher than the average balance in the corresponding period in 2023.

Separately, the research found that 67% of active cash ISA savers fully utilised their £20,000 ISA allowance in the last tax year, with two thirds (66%) also planning to invest the full allowance during the new tax year.

Nearly nine in 10 (88%) ISA savers said they would open a new cash ISA this tax year, with 22% also opening a stocks and shares ISA. 

Derek Sprawling, Paragon Bank Savings Managing Director, said: “The 2023/24 tax year was one of the strongest ISA seasons on record and the new tax year has carried on in a similar manner. We had our busiest ever day for applications on April 8 as savers looked to open their new ISA early in the new tax year to take full advantage of the tax-free wrapper.”

He added: “It is encouraging that nearly two-thirds of our active cash ISA savers fully utilised their £20,000 allowance last tax year, with a similar proportion looking to do the same this year.

“We have seen the average ISA deposit increase in the new tax year and, with the advantage of the ISA Wallet feature that enables savers to open a mix of different ISA accounts with Paragon in the same tax year, savers can use the rest of the year to use the remainder of their subscription. As ISAs celebrate the 25th anniversary of their launch, it’s positive to see that they are thriving.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank

Notes to editors:

Paragon surveyed 1,648 ISA savers during April 2024.

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.