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 {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The dark side to your CHRISTMAS NIGHT OUT
Do you know what’s in your glass this party season?
IS THERE ANYTHING MORE NOSTALGIC THAN CHRISTMASES PAST?
Do you remember the anticipation before the big day, pondering endlessly about what should go on your Christmas list? I would lovingly write two or three things down, pop it into an envelope and leave it by the fireplace to be wafted up the chimney like something out of Mary Poppins.
The Christmas that CHANGED OUR LIVES
We speak to three women about their most wonderful time of year
Fix a festive FALL-OUT
Had too much of a good thing? Our expert tips will help you feel better quickly
Reunited for CHRISTMAS
After his rocky TV comeback, ts Philrelying on wife Steph this holiday season?
'I don't want a THREE DAY HANGOVER'
Lorraine Kelly on how she’ll be spending her first Christmas as a grandma
Mistletoe AND WINE
All Rose wanted was a little extra sparkle at Christmas
Would you spend more ON THE DOG THAN ON YOUR HUSBAND?
Brits are happy to fork out more on their pets’ gifts than on their other half’s, according to a study. We investigate….
A new ACT OF BETRAYAL
King Charles misses Harry 'desperately' but has the trust gone, writes Emily Andrews
PRINCE ANDREW AND FERGIE ARE EXPECTED FOR CHRISTMAS!
After a tough year for William and Kate, the Waleses are looking forward to Christmas and catching up with the Royal Family – including, it seems, Prince Andrew and Sarah, Duchess of York.
