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The Guardian - UK
The Guardian - UK
Business
Hilary Osborne

Cash Isas back in fashion as interest rates rise to 5%-plus

Twenty pounds sterling notes with security hologram printing features.
HMRC figures show that 12.2m cash Isas were paid into in 2008-09 but the number had dropped to just over 7m in 2021-22. Photograph: Roy Conchie/Alamy

Rising interest rates have been good news for savers – but there’s a potential sting in the tail if you have a few thousand pounds tucked away. As Guardian Money warned last week, while until recently few of us needed to worry about breaching the savings tax allowance, there’s now a chance that you could face a bill on your returns.

It all means that suddenly, after several years out of fashion, cash Isas look like a good idea.

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