Why you should still put money into a cash Isa

Interest rates may be lousy, but tax-free saving into a cash Isa is still a good idea.

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Set your sights on the long term and use your Isa allowance
(Image credit: © Getty Images)

The last few months of the tax year are known as Isa (individual savings account) season thanks to the sheer volume of people who wait until the last minute to use up their tax-free allowance. Anyone over the age of 16 can deposit up to £20,000 into a cash, stocks-and-shares or investment Isa every tax year. Once the money is in an Isa it can grow free from any risk of having income tax or capital gains tax deducted. But, unlike other tax allowances, unused Isa allowances can’t be rolled over into the following tax year. Use it by midnight on 5 April or lose it.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.