Santander has issued a significant alert to its customers aged under 65, signalling that 'things are changing' in a major update to savings rules. The high street banking giant dispatched correspondence this week, outlining pivotal adjustments that will impact how savers manage their funds in the coming years.
Encouraging Smarter and Safer Saving Habits
In emails sent to customers, Santander encouraged account holders to 'save smarter' and 'feel safer' with their finances. The communication highlighted: 'From increased protection on your savings, to changes in ISA limits, how you save this year could make a difference. See what these changes could mean for you, and how you can make the most of your savings in 2026.'
Current ISA Allowances and Deadlines
Santander clarified that for the present tax year, savers across the United Kingdom can deposit up to £20,000 into Individual Savings Accounts (ISAs) while maintaining any interest earned completely tax-free. The bank emphasised: 'The current tax year ends on April 5 2026, so there's still time to use your allowance before it resets.'
Major Changes Looming from 2027/28 Tax Year
The banking institution then revealed that substantial modifications will take effect from the 2027/28 tax year. While the overall ISA allowance will remain fixed at £20,000, a new restriction will apply specifically to customers under the age of 65. For this demographic, the maximum amount that can be paid into cash ISAs will be capped at £12,000.
Enhanced Financial Protection for Savers
All funds deposited with Santander continue to be safeguarded by the Financial Services Compensation Scheme (FSCS). Notably, as of December 1 2025, the coverage limit increased from £85,000 to £120,000 per saver, per banking institution. Santander explained: 'This means you could save more with us in a Santander account and know your money is safe. Eligibility rules apply.'
Understanding Government-Imposed ISA Regulations
The UK government establishes an 'annual allowance', which represents the maximum contribution permitted across all ISA accounts each tax year. Authorities may also impose restrictions on the quantity and categories of ISAs that individuals can fund annually. For the 2025/26 tax year, the limit remains set at £20,000, with deposits allowable up to and including April 5, 2026.
This proactive communication from Santander aims to ensure customers are fully informed and can plan their financial strategies accordingly, particularly in light of the forthcoming adjustments that will specifically affect younger savers from 2027 onwards.
