5 reasons to use your cash ISA allowance early
You can shelter more from the taxman
Interest earned from a standard savings accountis immediately subject to a tax of 20%, while higher rate taxpayers pay a total of 40% once they have declared their savings to HM Revenue & Customs and those in the top tax band pay 50%.
However, interest on cash ISAs is tax-free. Many people wait until the end of the tax year to use their annual ISA allowance which effectively means they miss out on a year’s tax-free returns.
Every week, Clare Francis, financial journalist and editor of comparison site moneysupermarket.com will offer tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash. From energy bills to car insurance; credit cards to children’s savings accounts; mortgages to discount vouchers Clare will show you how to make sure you’re getting the best deal.