3 reasons why an Easy Access Cash ISA may be a good savings option for you

We’re now in the 2024/2025 tax year, so it’s a good time to explore why an Easy Access Cash ISA may be a good savings option for you this tax season.

If you want to benefit from tax-free savings, ISAs are a great savings option. In any normal savings account, your Personal Savings Allowance (PSA) will depend on your income and the rate of tax you pay.

For the 2024/2025 tax year, the ISA allowance is £20,000. This allowance applies across all the ISAs you hold, not each individual ISA account.

ISAs are a great way to save and have become more and more popular since they were launched. But there are a lot of different types of ISAs to choose from, so it’s always good to check and research which type suits you and your savings needs.

Reasons why an Easy Access Cash ISA could be for you

• Freedom to access your money whenever you need it. Some ISAs need you to lock your savings away for a certain amount of time and give you less flexibility with your money. But with an Easy Access Cash ISA, you have a lot more freedom to save in a way you want while still getting the benefits of an ISA. You can withdraw and deposit your money whenever you need, so you don’t have to worry about not having access to your savings if something happens like the boiler breaks or your car needs repairs. If you add any funds, you’ll need to make sure it’s within the ISA subscription limits. But just remember any money you withdraw you won't be able to add back in within the same tax year without it counting towards you ISA allowance.
• The ability to transfer from another provider. With an Easy Access Cash ISA, you can transfer to or from another provider if you spot a higher interest rate somewhere else. A lot of providers won’t require any notice for this, so you can move your funds whenever you want to benefit from the best interest rates and maximise your ISA allowance.
• You can use the monthly interest option to add additional income requirements. Easy Access Cash ISAs can calculate interest either monthly or annually. This means that if you want your interest paid back monthly, you can do that as a way to top up your monthly income.

When it comes to your savings, it’s a unique experience and everyone is different. It’s important that you research and understand any ISA you subscribe to, and which one will best suit your savings needs.

If you have any questions or want any more information, check our FAQs or get in touch.