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Martin Lewis gives ISA update as savers face major rule change

On a This Morning phone-in yesterday, Martin Lewis urged parents and grandparents to consider investing rather than saving within Junior ISAs, arguing the 18-year timeline suits long-term growth.
Junior ISAs lock money away until a child turns 18, creating nearly two decades of potential growth. Lewis noted that parents with existing emergency funds should prioritize investing over cash savings for these long-term accounts.
Brian Byrnes, Director of Personal Finance at Moneybox, emphasized that consistency is key when managing ISAs. He noted the overall annual deposit limit remains £20,000, requiring savers to align accounts with specific financial goals.
Savers should prepare for April 2027, when the annual Cash ISA limit for those under 65 drops from £20,000 to £12,000. The overall ISA allowance remains £20,000 per tax year, and existing savings will not become taxable.
For those saving for a first home or retirement, a Lifetime ISA offers a 25% Government bonus on annual deposits up to £4,000, providing up to £1,000 in extra funds yearly. Product rules may evolve by 2028.

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