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
Denne historien er fra May 09, 2022-utgaven av WOMAN - UK.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 09, 2022-utgaven av WOMAN - UK.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
View from THE BACK
Isabel Webster says what you're thinking
Time to get ON BOARD!
A no-fly cruise from the UK offers a hassle-free holiday to remember
Matt Tebbutt's FESTIVE FAVOURITES
The Saturday Kitchen star serves up easy, seasonal winners
I'm the child OF AN AFFAIR
Jennifer Barton still feels like a dirty secret at 42
One final PARTY
Caitriona Adams' fun-loving little boy was brave until the end
How to be alone NOT LONELY
Connecting to others has never been more important for your health
15 ways to BOOST YOUR ENERGY over Christmas
Survive the last of the festivities and jingle your energy bells with help from our experts
TSUNAMI 20 years on
What is it like to be caught up in a devastating natural disaster? We speak to a survivor
TRUMP VS HARRY
Prince Harry faces a troublesome Christmas as he waits to see what President-elect Trump may do about his visa situation.
'Furious' Meghan's NEW ATTACK
Royal biographer Duncan Larcombe on the claims that things are worse than ever between the sisters-in-law