Martin Lewis warning to anyone with cash ISA as millions underpaid

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Martin Lewis warning to anyone with cash ISA as millions underpaid
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Martin Lewis has issued a warning to anyone with a cash ISA, saying millions are being underpaid. The MoneySavingExpert has issued his latest advice in a newsletter.

LancsLive reports for most people normal savings accounts '"beat" cash ISAs. This is because your Personal Savings Allowance means that you would need to have £34,500, or £17,500 if you're in the higher tax bracket, in a top easy-access savings account before you earned enough interest to start being taxed on it.

People on the basic 20% tax rate can earn up to £1,000 interest a year on any savings account tax-free, while those on the higher 40% rate can earn £500 a year, ChronicleLive reports.Martin then urged people to check their accounts as ISAs pay out "diddly squat", often under 1%.

On the MSE website, he explained: "For those with larger savings, as a cash ISA is just a savings account you can put £20,000 in per tax year where interest is never taxed - and doesn't count towards the Personal Savings Allowance - then for savings that would have tax taken off, they're a winner.

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