Martin Lewis picks best Cash ISA to open now before cuts

Money expert Martin Lewis has picked the best Cash ISA to open now right now before rates fall, paying a bumper 4.7% fixed for a year.

Cash ISAs have become the centre of attention again in the run-up to next month's Autumn Budget, with speculation ramping up that Chancellor Rachel Reeves may be ready to pull the trigger on a hefty £10,000 limit cut.

According to financial experts, the government is preparing to slash Cash ISA limits in half in the November announcement, from their current £20,000 limit to just £10,000, while keeping the overall £20,000 limit in place to encourage savers to invest in a Stocks and Shares ISA instead.

To make matters worse, savings rates have fallen 'across the board' in recent weeks following Bank of England base rate cuts.

But there are fixes on the market right now which will protect from rate cuts and will allow you to maximise your current £20,000 Cash ISA limit right now, whatever happens in next month's Budget, as it's unlikely any changes would take effect until at least the next financial year in April 2026.

Martin Lewis' weekly MSE newsletter picks out Tembo as its top Cash ISA 1-year fix right now, which promises a 4.27% fix for one year, while Zopa will give 4.22% fixed for one year.

For a two-year fix, Bath Building Society offers 4.15% and Vida Savings 4.12%.

With a Cash ISA fix, the rate is protected from any cuts for at least 12 months. You can deposit up to £20,000 between now and April and will not owe any tax on the savings interest, then you can deposit more money in April (depending on what the Cash ISA limit is).

If you don't earn enough money or savings interest to need an ISA, there's also a top pick fixed savings account which will pay even more.

Marcus Bank's one-year fix pays 4.55% and is protected from any rate cut for at least that 12 months. The other benefit is that it allows you to withdraw your money early, even though it's a fix.

MSE explains: "With normal fixes, you lock your money away, without access, in return for a guaranteed rate of interest. Yet the new top 1-year fix Marcus (part of Goldman Sachs) 4.55% AER (minimum £1) is rare as it lets you close the account, without notice, to withdraw, and you just lose up to 90 days' interest."