We’re fresh into the new financial year, so now is the perfect time to start thinking about spring cleaning your finances.
By taking just a few proactive and thoughtful steps, you’ll be feeling organised and optimistic about anything you have coming up in the second half of 2025. Read on to discover our top tips on spring cleaning finances.
If you have an ISA (Individual Savings Account) or are considering opening one, you can pay in £20,000 tax-free during this financial year. The tax year runs from the 6 April 2025 until the 5th April 2026. As savvy savers might be aware, this is known as ‘ISA season’.
Using up as much of this £20,000 limit ensures that your ISA is working at its hardest, and you'll be able to contribute again up to the allowance in 2026/2027, while still holding funds from previous years. Get as close to it as you can.
We recently discussed the changes to ISA rules in 2025 which will further shape your savings plan from April onwards. Knowing the details and impact of these new rules can benefit you and family members, including those with Junior ISAs.
You can get more useful tips on getting the most from your ISA here.
If you’re not 100% sure of how much money is leaving your bank account(s) each month, you can’t make an informed investment for the future. Thankfully, you can regain control by creating or updating your monthly spending budget this spring.
A great place to start is to refer to bank statements (online or digital) to find payments that you no longer need. For example, unnecessary standing orders or direct debits can be cancelled. Or, you may have outgoings that could be reduced, such as subscriptions or mobile phone contracts.
The money saved across key areas could be reinvested into a new savings account. We have award-winning personal and business savings accounts with competitive interest rates and a range of account types to suit different needs and circumstances. You might be surprised at the outgoing expenses you no longer need.
Knowing where you want to be financially next April can be a good motivator for prioritising your savings. Many people find it difficult to set aside money for their future, whether that is for retirement, assisting grown-up children, buying a holiday home, or getting married. However, you’ll benefit greatly if you set clear financial goals that work for you.
To be successful, these goals should be realistic and relate to your monthly income and outgoings. Include short and medium-term goals over the next tax year and anticipate any considerable purchases. These can include planned home renovations, buy to let investments, travel and healthcare plans, along with an emergency fund. An independent financial advisor (IFA) should be able to help you develop measurable goals.
Read more: Saving for home renovations: how it’s done
You may have already invested in your pension for a more secure future. However, the new financial year is the ideal time to revisit this.
Consider whether increasing your employee contributions is affordable. Your employer may match this amount, meaning you could save more than you think. Also, remember to check how your pension investments are performing.
Financial institutions are great at keeping you up to date on how your accounts and investments are doing, but that can mean a lot of letters throughout the year. If you haven’t already, we would suggest you go paperless and create a digital filing system. This is kinder to the planet and won’t clutter up your home or office.
If you prefer something you can physically hold in your hand, sort through all your paperwork and file it away neatly. Statements should be kept for at least a year, however, many choose to keep them for as much as seven as this is the time limit set for legal action related to most financial issues.
If you have paperwork that is older than this, please consider safe disposal. A shredder will be your new best friend!
A lot can change in a short space of time, so the start of a new financial year is the perfect time to check that your personal details are up to date. This is especially important if you have done any of the following within the last 12 months:
If you have multiple bank accounts, be they current accounts for spending or savings accounts for the future, you’ll be very familiar with the amount of administration it takes to keep things organised.
Sometimes, combining these accounts into fewer options can make managing your finances easier, leaving you with less to track and monitor over time.
Having multiple accounts can make it easier to get confused with all the transactions you’ll have to monitor.
Spring cleaning your finances can help you reassess and achieve your future goals. And we’re here to help. You can now open a new Cash ISA for this tax year. Visit our Cash ISA savings accounts page to learn more.