More savers are facing a tax bill, as rising rates mean they earn enough interest to tip them over their tax-free personal savings allowance (PSA).
Tax isn’t levied on the interest you earn in a cash ISA. But cash ISAs usually pay lower interest rates, so check whether you could earn more from an ordinary savings account, even after tax is deducted.
Any tax due on savings interest will usually be taken via the PAYE system, using information provided by banks and building societies. Or declared on a self-assessment tax return, if you file one.
House insurance tips
Start with your renewal notice, it’s worth checking if you could pay less elsewhere.
I had to contact various insurance providers in August – I like to be able to speak to someone so that limits my actions. For me I found A Plan the best one.
Strip out any extras that you don’t need. You could even buy your home and car insurance together. This typically gets you a 10% discount, but make sure both are reasonably priced to start with.
Ask your insurer why the renewal price has increased, and mention the quotes that you’ve found elsewhere. Picking up the phone to your insurer can be awkward, but it can really pay off. A 2022 survey of 14,408 Which? Members with car or home insurance found that 48% of those who discussed their renewal quote with their insurer got it reduced, saving them an average of £54 on their home insurance.
If possible, opt to pay annually, to avoid the interest charges (as high as 30%) that apply to monthly payments.