From cash ISAs to bills – 12 experts reveal how to save hundreds in 2026

The new year offers the perfect opportunity to take stock of your finances – and 2026 gives more reason than most. With a round of tax hikes and allowance cuts on the way, the year ahead will bring a new set of challenges.

Research by PwC in autumn 2025 showed the majority (85%) of consumers are concerned about rising costs, with every demographic more worried than they were at the start of 2025. But being proactive now can put you on the front foot, helping you manage your budget and make your money work harder.

We asked the experts exactly how to save in 2026 – take a look at the 12 tips below.

A rainy day fund is the key to financial security, and 2026 is the year to either start one or strengthen what you have.

Adam French, head of news at Moneyfactcompare.co.uk, said: “It starts with understanding what you can afford to save each month. Begin by tracking your income and essential expenses, then work out a realistic amount to set aside, whether that is 1% or 20% of your income, it all counts.

“Once you’ve settled on an amount, make it automatic by setting up a direct debit or standing order to transfer the savings as soon as you get paid. This removes the temptation to skip a month.”

He also stressed the importance of securing a good return. Mr French said: “Research easy access accounts or regular savers with high interest rates, and watch out for withdrawal limits or penalties. Given that it is your emergency fund, it should be easy to access.”

Debt becomes more expensive the longer it’s left, so tackling it early in the year can help secure long-term savings. Jacqui Hamilton, a consumer affairs expert at Experian, shared an approach to help save money on interest and clear your balance faster, known as the Avalanche Method.

She explained: “Start by identifying which debts carry the highest interest rates – these cost you the most over time. Focus on paying those off first while continuing to make at least the minimum payments on your other accounts. Once the highest-interest debt is gone, move on to the next.

“Reducing your overall debt not only frees up your finances but can also improve your credit score, making it easier to access better rates and products in the future.”

With household costs still rising, a budget is essential. It helps you track your spending, understand where your money goes, and ensure you have enough to cover everyday expenses in addition to the small luxuries.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “A budget is one of the most powerful ways to take control of your finances, and creating one is relatively simple. Jot down how much money is coming in, then list your essential spending, such as bills.

“Then add in those ‘like-to-have’ expenditures, like holidays and new clothes… and don’t forget savings and investments. Finally, subtract your total expenses from your net income, after tax, to see what’s left.”

If you’re overspending, Ms Haine says to cut non-essentials first and, if needed, negotiate a better deal on core bills. Automation can also help keep things on track, added Ms Haine. She said: “Automate big payments to leave your bank account at the start of every month. That way, you know exactly what’s left for day-to-day spending.”

She added: “And be mindful not to hold too many savings in a regular bank or building society account, as savers risk breaching their personal allowance. Tax-efficient savings are becoming more key.”

Map out your household bills – broadband, energy, and insurance – and use a comparison site to see if you can secure a cheaper deal. According to MoneySupermarket, 10% of customers who switched energy providers using its platform made an average annual saving of £851. Broadband customers saved an average of £171 per year.

In other concerning news, thousands of Brits are still losing money to “invisible spending” on forgotten subscriptions. Surveying 2,000 adults in 2025, HSBC found people save an average of £34 a month (£408 a year) by cancelling services, with streaming platforms (51%), music services (30%) and delivery memberships like Amazon Prime (29%) the most commonly axed.

Yet, the average person still wastes £61 a year on unused subscriptions, often kept out of habit, “just in case,” or fear of missing out. The advice here is simple. Review your direct debits and remove any that you no longer need or aren’t using.

With tax thresholds frozen and more households being dragged into higher bands, claiming every relief you’re entitled to is essential.

Rachael Griffin, tax and financial planning expert at Quilter, said the marriage allowance is one of the simplest ways for some couples to reduce their tax bill.

She said: “Frozen tax thresholds mean the state pension will again exceed the personal allowance next year, bringing many more pensioners into income tax. The marriage allowance remains a simple way for couples to save. It is one of the few remaining opportunities to cut the tax bill without complicated planning.”

The marriage allowance lets you transfer £1,260 of your personal allowance to your spouse or civil partner. This can reduce tax by up to £252 per tax year.

To benefit as a couple, the lower earner must normally have an annual income below the Personal Allowance of £12,570. The higher earner must pay income tax at the basic rate, which usually means their income would fall between £12,571 and £50,270.

You can backdate your claim by up to four years if eligible, which could result in a rebate of just over £1,000 if the full amount is claimable.

Fraudsters are becoming more sophisticated, and scam losses continue to rise. Richard Daniels, director of fraud at TSB, said: “Almost 1.5million is lost by households to bank transfer fraud in the UK every day, with over £2,000 lost per case.”

He added that staying sceptical is the strongest line of defence. He said: “Social media platforms are rife with scam content – from romance fraud, to purchase scams and bogus investment ‘opportunities’, so tread very carefully.

“While fraud attacks are increasingly complex, with pushy and persuasive scammers, you can beat them with a simple trick: Pause and ask yourself, ‘Could this be fraud?’”

That pause, he says, can help you “break the spell,” hang up, delete or verify before acting.

An estimated £24.1 billion in Government benefits is estimated to go unclaimed in 2025/26. It’s up to you to apply for help. Use Turn2Us’s Benefits Calculator and Grants Search tools to find the support you’re entitled to.

Start with the state pension. This isn’t paid automatically; you’ll need to claim it if you’re eligible (aged 66 or over).

The amount you get depends on your National Insurance (NI) contributions or credits, so check you’ve accumulated enough by reviewing your NI record online.

For hard-up households, Pension Credit can provide a vital boost to weekly income. It also unlocks additional support, such as free NHS prescriptions, dental treatments, and help with heating costs through schemes like the Warm Home Discount and Cold Weather Payment.

If you have care needs due to a physical or mental health condition, look into Attendance Allowance. This benefit isn’t means-tested, so your income and savings won’t affect eligibility, and it can be worth up to £5,300 a year at its highest rate.

Billions of pounds worth of pension pots are currently sitting idle and forgotten about in the UK. The average missing pot is worth around £9,470, rising to £13,620 for those aged 55–75, according to the Pensions Policy Institute. 

Frequent job changes mean many people leave multiple small workplace pensions behind, making them easy to lose track of. The good news is that reclaiming them is free. Start with the Government’s Pension Tracing Service, or use tools like Pension Attention or Gretel to reconnect with missing pots.

More than half of UK adults (53%) still don’t have a will, according to the Money and Pensions Service. That’s a startling statistic, considering the financial and emotional headaches that can follow an intestate death, from delays and legal wrangling to unexpected tax bills.

Dying ‘intestate’ means your estate will be divided according to intestacy laws, which may not align with your wishes.

Keep an updated list of your assets and write or update your will, especially if you have experienced a major life change, such as marriage, divorce, or remarriage, as these can render previous wills void.

With savings interest rates easing and inflation still on the rise, investing remains a key way to grow wealth over the long term – if you can tolerate some risk. 

Bestinvest’s Alice Haine said: “Investing in the stock market may not be suitable for everyone, particularly the risk-averse, but equities have historically delivered higher real returns that beat inflation than cash over the long term. Although a time horizon of at least five years is recommended to ride out any short-term volatility.” 

She warned that trying to time the market can backfire, adding: “A better approach can be to invest on a regular basis, such as monthly, rather than trying to time a lump sum investment. 

“This takes advantage of pound-cost averaging, where you buy smaller amounts at regular intervals regardless of market conditions. This helps to cushion the effects of volatility.”

A diversified portfolio is essential, and for hands-off investors, she noted that managed or “ready-made” portfolios can be a smart way to access expert asset allocation and rebalancing without having to do the work yourself. 

Cash ISA rules are set to change, with a new £12,000 annual allowance cap for under-65s set to come into force from 2027. From that point, those wanting to use their full £20,000 ISA allowance must direct the remaining £8,000 into investments.

Ms Haine said: “Utilise your Cash ISA while you can – if you are under 65. Those that want to take advantage of their existing Cash ISA allowance could funnel £40,000 into their account before it happens – that’s £20,000 this tax year and £20,000 next.” 

With tax thresholds frozen and more savers being pulled into taxable territory, she warned that breaching the Personal Savings Allowance (the amount of interest you can earn before paying tax) is becoming easier. Particularly for higher-rate taxpayers who only need modest savings before facing tax on interest. 

Ms Haine said: “Bottom line: taking advantage of your Cash ISA allowance for cash savings is a no-brainer.”