An estimated 2.4 million fixed rate adult savings accounts are due to mature over the next three months, according to analysis from Paragon Bank.

Paragon analysed market data from CACI which showed that 1.57 million fixed term adult ISA accounts are set to mature in this period, alongside 826,000 non-ISA fixed-rate variants.

April, which marks the end of the 24/25 tax year and the beginning of the 25/26 new tax year, is set to be the busiest month with one million accounts maturing, followed by March with 719,000 maturing accounts.

CACI’s figures, based on the savings deposits of 40 cash savings providers, also showed that over 535,000 non-ISA adult fixed-term savings accounts which are due to mature over the next three months will have generated enough interest to incur a tax payment if the account holder is a higher-rate taxpayer. This figure reduces to 352,000 for basic-rate taxpayers.

“Over half a million non-ISA fixed term accounts are maturing with sufficient interest to incur a tax bill for the holder and I would expect those savers to consider switching to an ISA variant if they don’t already utilise their annual tax-free allowance,” Paragon’s managing director of savings, Derek Sprawling, commented.

“The upcoming months will be a pivotal time for millions of savers as their fixed rate accounts mature. With a significant portion of these accounts earning rates which were set when underlying reference rates were at their peak and showing signs of upward movement, most maturing savers will, unfortunately, likely not be able to match their previous rate when it comes to an end.

“It’s therefore essential for savers to consider their options carefully to match their current, and future, returns.”

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