Desperate Brits are opening up cash ISAs in order to take advantage of the tax-free savings before Rachel Reeves scraps them, according to one of the UK's largest savings platforms.

Reeves is believed to be coming under pressure from city chiefs who want the cash deposited in the easy access savings accounts to go into stocks and shares ISAs instead.

Stocks and shares ISAs are more risky because they invest in the stockmarket, and fund managers also get fees for managing them.

Cash ISAs are similar to standard cash deposit savings accounts, the only difference is that Brits can put up to £20,000 a year into one tax free.

One of the UK's largest savings platform said cash ISA season had started four weeks early, partly on the back of speculation about the future of the cash ISA.

Hargreaves Lansdown said 56% of new clients coming to its savings platform every day over the past week had opened a cash ISA. Inflows into HL’s cash ISA are up 325% in 2025 so far comapred to February 2024.

Mark Hicks, head of active savings, Hargreaves Lansdown said: “The cash ISA season has kicked off early, as rumours swirl about the future of the ISA landscape. It’s building on the phenomenal growth we’ve seen over the past year.

"We’re seeing more new clients opening up an HL cash ISA than an Active Savings account. This doesn’t usually happen until mid-March, as we get closer to the tax year end, but the trend has kicked off already in February."

Savers who open a cash ISA in February can also take advantage of higher interest rates, as cash ISA rates are expected to ease off in the coming weeks.

Hicks added: "Since the Bank of England cut last week we’ve seen fixed rates fall already by 0.1%”

Sarah Coles, head of personal finance, Hargreaves Lansdown said Cash ISAs were flourishing under pressure.

"They had a record year in 2024, and now we’re seeing an early start to the cash ISA season. With decent rates and frozen tax thresholds pushing more people into paying tax on their savings, it’s easy to see why.

"It’s ironic that at the same time, there has been so much speculation over the future of the cash ISA. Everyone should hold some cash, but not too much, and getting the balance right is always tricky.

"However, reducing the tax incentives for the cash ISA isn’t the answer, and could expose diligent savers to tax. Even rumours of changes, as we saw with pension tax free cash in October last year, always risks reducing faith and confidence in the stability of system."

She added: "The big barrier to encouraging greater investment is not the ISA framework. The ISA is a well-known brand and HL supports cash and S&S ISAs. Removing the hassle of worrying about the tax liabilities of saving and investing is a vital way in which the government encourages people to think more long term about their finances."