Premium Bonds<\/a> or another NS&I product. The appeal of Premium Bonds has just increased dramatically for some people, as any winnings are tax-free. While there is obviously the chance you could win nothing, as there is no traditional interest paid on the accounts, you could win in the prize draw and those winnings will be tax-free.\u201d<\/p>\nShe also added that savers should consider turning to investments, which usually make a lot more money than cash savings in the long run.<\/p>\n
Ms Suter added: \u201cWhile the ISA allowance will be slashed for cash, it will remain at the full \u00a320,000 for investments. We know that we\u2019re a nation of cash lovers, and many people have more cash than they need. FCA data shows that since 2021 the number of people holding more than \u00a310,000 in investible assets wholly or mainly in cash has risen from 8.4 million to 11.8 million.<\/p>\n
\u201cBut savers should at least consider investing, to see if it\u2019s right for them. Recent research from AJ Bell found that investing \u00a31,000 each year since 1999 in the average IA Global sector would now be worth \u00a392,349 versus just \u00a336,290 in the average Cash ISA \u2013 a difference of \u00a356,059. So those sticking to cash could be leaving themselves much poorer over the long term.\u201d<\/p>\n
Finally, savers can use \u2018tactical\u2019 fixed term savings accounts.<\/p>\n
She said: “Fixed rate savings accounts can earn you higher interest, you just have to be willing to lock your money up for longer. You can choose the length depending on your needs, from one year up to five years or more. But it\u2019s a good way to lock in a higher return than easy-access cash. The money will still be taxable if it\u2019s not in an ISA, but you could be tactical with the accounts you choose.<\/p>\n
“You only pay tax on the interest for most fixed-rate accounts at the end of the term, which means you could defer the tax hit to another tax year. For example, if you took out a one-year fixed rate account now, that paid out the interest at maturity, that would only factor into your 2026\/27 tax year. It\u2019s a smart move if you know you\u2019re going to drop to a lower income tax bracket in a future year, which means you\u2019d have a higher personal savings allowance and pay a lower tax rate on your savings. Equally it can be a good move if you\u2019ve got lots of taxable savings this year, and so have already hit your tax-free limit, but may have less next year. It\u2019s a good idea to track the savings accounts on a spreadsheet, so you don\u2019t lose track of when they mature, or use a cash savings hub, so they are all in one place.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Savers are being hit with a ‘triple blow’ say experts (Image: Getty) Households with savings face a \u2018triple…\n","protected":false},"author":2,"featured_media":486210,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,1446,59,1086,158345,134891,24044,3668,172394,1892,56,54,55],"class_list":["post-486209","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-cash-isas","tag-gb","tag-investing","tag-investment-options","tag-nsi","tag-personal-savings-allowance","tag-savings","tag-tax-rates-on-savings","tag-taxes","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/486209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=486209"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/486209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/486210"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=486209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=486209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=486209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Saving](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/saving-money-6812686.jpg\" "\\"Saving")
<\/p>\n