Press the rewind button and go way back - before COVID, before Brexit - to April 2015, then picture a devastatingly handsome man at home, on the sofa, talking about money with his wife. Well, he has nowt to do with this, but possibly on the telly in the corner, I was on-air at the time urging savers as usual to use their new tax-free cash ISA allowance - because 'money was nicer in an ISA'.
Everything changed though in 2016, when the Personal Savings Allowance (PSA) launched. It means:
Basic 20% rate taxpayers can earn up to £1,000 interest a year from any and all savings without paying any tax on it; after that their interest is taxed at 20%.
Higher 40% rate taxpayers can earn up to £500 a year; after that their interest is taxed at 40%.
Top 45% taxpayers don't get a PSAall their interest is taxed at 45%.
This is a huge amount of tax-free interest for most people. Even at today's stand-out top easy-access 1.5% rate from app-only 'Cash have to hav intere: bank chase.co.uk, you'd need nearly 70 grand saved to generate £1,000 interest. Which is why the vast majority of people - over 19 in 20 - don't pay tax on savings interest any more.
All a cash ISA is, is a savings account you don't pay tax on.
Focus on the interest rate
This story is from the May 09, 2022 edition of WOMAN - UK.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 09, 2022 edition of WOMAN - UK.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Fast&fresh DINNERS
Healthy meals to keep you satisfied on busy weeknights.
Health checks that could SAVE YOUR LIFE
We service our cars and boilers to make sure they run smoothly, so why not our bodies?
FEEL SEXIER in 60 seconds
Try these instant tricks to lift your libido and get turned on fast
Destination SWAPS
Change your favourite resorts for these great-value, lesser-known places
5 steps to the PERFECT HALLWAY
Try these makeover musts to transform the often-overlooked space into an entrance you can be proud of ai
The secrets WE KEEP
Two women explain why they realised it was finally time to speak up
Our split made us STRONGER!
Bernie Jones loves her husband more after their break-up 4
Can our beloved NHS BE SAVED?
With waiting lists for surgery reaching new highs, we investigate the lengths patients are going to in order to receive treatment
WANT TO SEE BEHIND THE CASTLE GATES?
It’s an interesting development that King Charles has increased public access to Buckingham Palace and opened up Balmoral Castle for the first time.
'The divorce SPEAKS FOR ITSELF"
Singer-turned-actor Billie Piper on her turbulent past and becoming the woman she is today