ISAs vs savings accounts: what’s the best home for your cash savings?

Accessing competitive interest rates on savings accounts can put savers at risk of being taxed on the interest earned. We compare the pros and cons of cash ISAs with other savings accounts.

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Almost 2.1 million people are expected to pay tax on their savings this year
(Image credit: MoMo Productions via Getty Images)

An ongoing freeze to tax allowances is putting savers at greater risk of being taxed on their savings, particularly amid a stronger interest rate environment.

Almost 2.1 million people are expected to pay tax on their savings this year, including 954,000 basic-rate taxpayers and 590,000 higher-rate taxpayers, a Freedom of Information request from AJ Bell showed.

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Jessica Sheldon
Deputy Digital Editor

Jessica is a financial journalist with extensive experience in digital publishing.

She was previously Digital Finance Editor at GB News and Personal Finance Editor at Express.co.uk. She enjoys writing about savings, pensions and tax, and is passionate about promoting financial education.

With contributions from