A fab time to start saving

CASH Isas have long been cherished by savers for their tax-free perks.

But the introduction of the personal savings allowance means people no longer pay any tax on their savings interest – whether in an Isa or elsewhere.

Now, basic-rate taxpayers can earn up to £1000 in savings income tax-free. Research into how cash Isas compare with bonds has found that fixed-rate bonds are now way out in front on average rates available. The choice of cash Isas has also fallen, with about two two-year fixed rate bonds available for every single two-year fixed-rate cash Isa.

Rachel Springall, a finance expert at Moneyfacts.co.uk: “The Isa market is in dire need of a boost in competition.”