Moneysaving expert launches tax-free account

Moneysaving expert launches tax-free account

It provides four withdrawals every 12 months, starting from the day the account is opened. This tax-free account can be opened with a minimum of $1 and savers can deposit up to £20,000 for the current tax year.

We use your sign-up to provide content in ways you've consented to and improve our comprehension of you. The account offers annual or monthly interest, which can be added to the account or paid into a nominated account. Savers can expect an annual variable interest of 4.90 percent tax-free p.a./AER or monthly variable interest paid at 4.79 percent tax-free p.a., 4.90 percent AER. ISA transfers from this and previous tax years' ISA allowances will be accepted.

This ISA is flexible, meaning that if someone withdraws from the account, they can redeposit that money within the same tax year without impacting their ISA income limit. The moneysavingexpert website has listed the account as one of the 'top easy-access cash ISA' paying 'the highest rate'. In July, the Bank of England's Money and Credit report revealed record-breaking inflows of more than £3 million. The surge in savings rates has resulted in the possibility of exceeding their annual Personal Saving Allowance and being taxed on their interest income. As a result, more taxpayers have been sheltering money in tax-free ISAs to keep tax liabilities to a minimum.