How grieving spouses can tap an extra ISA allowance to boost savings

Grieving spouses can benefit from the Additional Permitted Subscription, an allowance that lets them move a late partner’s ISA balance into their own account beyond the usual £20,000 yearly cap. After securing a certificate from each former provider, the survivor can open a new cash ISA that accepts APS deposits, though not all institutions do. Among the five largest building societies, Nationwide limits APS to a 3.3% one-year Triple Access ISA, while Skipton and Coventry offer around 2.05% rates, and Yorkshire provides options up to 4.4% on a fixed-rate product.

Major banks such as Lloyds, HSBC and Barclays accept APS but often at rates as low as 0.75% or as high as 3%. Digital platforms like Trading 212 and Virgin Money present more competitive rates, and the account becomes a regular cash ISA that can be transferred later. Savers are advised to compare offers and move to higher-yielding accounts to maximise tax-free growth.