‘I’m a finance expert - here is one ISA job you need to do now’

A finance expert has revealed the one job that savers with ISAs need to do to make their money work harder and get better returns on the money they have put away. Cash ISAs are the most popular form of ISA in the UK, allowing people to earn £20,000 tax-free interest on their savings. While there was talk of Rachel Reeves radically reducing that £20,000 limit, the rule remains in place and savers can act now to make the most out of it.

Many people have had their money in a Cash ISA for many years. However, it might be a good idea to move their money to better returns. That is what one expert has said, explaining how we can properly put our money to work to get the most out of it. Antonia Medlicott, who is Founder and Managing Director at Investing Insiders, says that we should be moving our money around if there are ways to get better interest rates. She explains that in the current cost-of-living environment and often harsh financial climate, it is important that savers make the most out of their money.

She advises savers to look for ways to make their money work harder. This involves checking to make sure they don't have money in low-interest savings accounts. Instead, this money could accrue better rates in a tax-free ISA.

She says that only 20 per cent of savers currently utilise the full £20,000 limit on Cash ISAs. Similar advice was shared by another expert, esteemed finance journalist Paul Lewis.

He revealed that savers might be losing out on serious money because of interest rates five years ago compared to now, explaining that rates were as low as 1 per cent in 2020 but can be up to around 4 per cent today.

Meanwhile, Medlicott shared some other advice for savers in the UK. For those with more long-term goals with their savings, she says that opening a Stocks and Shares ISA is a good idea.

Although some people are reluctant to do this, as these accounts do not guarantee tax-free interest the way a Cash ISA does, they often bear better results for savers.

She warned: "Historical performance shows that investments tend to return more than cash holdings over a five year period, but are more likely to be subject to short-term market volatility as seen with Trump tariffs, so you don’t want to be in a position where you need to withdraw your savings during a market downturn and end up losing money.