Cash Isas are on borrowed time - don't miss the weekend deadline

The deadline to use this year's tax-free ISA allowance is fast approaching, with the financial year ending in days.

Adding to the pressure, April 5 falls on a Saturday this year. Although many ISA providers will accept online applications up to midnight on the day.

Speculation is growing that Chancellor Rachel Reeves will take the knife to the £20,000 Cash ISA allowance.

While she held off in her Spring Statement on 26 March, a Treasury statement hinted at future changes.

It said the government is planning reforms to "get the balance right between cash and equities" and "help savers feel more confident about investing", which points to the direction of travel.

A change could be announced in the Autumn Budget and take effect from April 6, 2026, although I can't say for sure.

Jason Hollands, managing director at Evelyn Partners, said the key question is where the new Cash ISA cap will be set. "An annual cash limit of £10,000 would not impact many savers, but a £4,000 limit, which has been speculated on, would be a blow."

Cash ISAs remain the most popular type of ISA, despite Stocks and Shares ISAs offering better long-term returns.

Those who prefer the safety of cash should maximise this year's £20,000 allowance while they can, and take full advantage of the new allowance from April 6.

Beyond that, nobody knows what will happen.

They should also shop around, said Paul Went, managing director of savings at challenger bank Shawbrook. "Sticking with the same bank or building society might feel like the easy option, but could mean missing out on a better rate elsewhere."

While Cash ISAs offer security, inflation can erode their value unless savers chase the best rates.

Today, the average Cash ISA pays just 1.82%, far below February's 2.8% inflation rate, which could rise to 4% over the summer.

Over the past year, savers lost more than £1.15 billion by earning below-inflation returns, said Uma Rajan, chief executive of Innovative Finance provider CapitalRise. "Savers should ask themselves if they have the right balance of risk across their financial products."

Savers with cash in a standard savings account should consider shifting funds into an ISA, as growing numbers risk exceeding their Personal Savings Allowance (PSA).

This has been frozen at £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers since 2016, with interest above that taxable.

Growing numbers are turning to Stocks and Shares ISAs. Account openings have surged 57% in the past five years, while new Cash ISA openings have fallen 7%, research from InvestEngine shows.

While shares are more volatile in the short term, they tend to outperform over time.

Andrew Prosser, head of investments at InvestEngine, said Reeves wants to nudge more people into investing but the shift is already happening. "Stocks and Shares ISAs are growing in popularity without the explicit need to make Cash ISAs less appealing."

For those hesitant to invest immediately, most platforms allow savers to park money in a Stocks and Shares ISA as cash, earning interest while they decide when to enter the market.

Whatever you choose, don't wait too long. The clock is ticking.