TSB shares vital savings tips as ‘now is a good time’ to secure best interest rates | Personal Finance | Finance

What about ISAs?

ISAs are a particularly enticing savings option, as they offer Britons the chance to shield the interest they earn from tax – however, they might not be right, or even necessary, for everyone.

Mr Hatton said: “To understand whether an ISA is right for you, it’s also helpful to understand the Personal Tax Allowance.

“The Personal Tax Allowance is the amount of interest an individual can earn each tax year before they have to start paying tax on it. For a basic rate taxpayer this is £1,000, and it’s £500 for higher rate taxpayers.

“To put this into context, if you place £12,500 in a savings account earning four percent, it’ll earn £500 interest in a year.”