Since the number of cash ISA products on the market has increased from 301 to 347 since the introduction of the personal savings allowance in 2016/2017. This allowance enables basic-rate taxpayers to receive up to £1,000 a year in tax-free savings income. This allowance goes down to £500 for higher-rate taxpayers in the UK, while it is withdrawn for additional-rate taxpayers.
You are able to save up to £20,000 a year into an ISA, with cash as well as stocks and shares ISA being amongst the most popular options. Recent research has shown that there has been an increase of 45% in demand for cash ISA products since April 2016. This comes as a slight surprise, considering that low interest rates have offered subdued returns.
It is suggested that more savers are turning to cash ISAs to protect their savings for future years, it is feared that the allowance may be withdrawn. And so, as more are becoming aware of the believed end of this tax-free savings income it seems that options to ensure savings are maximised and protected are explored.
There are different options that can be explored when it comes to your savings strategy, our team of experienced accountants are able to help you to ensure yours is as thought out as possible.