Martin Lewis has issued a one-month 'use it or lose it' warning to anyone opening an ISA.
The finance guru was on BBC Radio 5 to talk about ISAs ahead of the new tax year. There are four types of Individual Savings Accounts (ISA) - cash ISA, stocks and shares ISA, innovative finance ISA and a Lifetime ISA.
You do not pay tax on interest on cash in an ISA or income or capital gains from investments in an ISA. Every tax year you can put money into one of each kind of ISA. The tax year runs from April 6 to April 5.
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You can save up to £20,000 in one type of account or split the allowance across some or all of the other types. You can only pay £4,000 into your Lifetime ISA in a tax year.
However, Martin Lewis has warned people to pay into ISAs now before the new tax year. He said: "Now, the maximum amount you can put into a cash ISA, stocks and shares ISA or any ISA in total in a year is £20,000. If you put money into an ISA in a tax year, it's not just tax-free that year, it is then tax-free year after year after year until you take it out.
"So picture it. If you were lucky enough to be able to put £20,000 in now into a cash ISA, you could then put another £20,000 in on April 6, the start of the new tax year, and then another £20,000 in a year on the April 6 and that would be £60,000 protected from tax.
"So if an ISA is right for you and it is not right for everybody. It depends on the circumstances. Do not delay.
"The deadline may be the April 5, but in practice you'll need to get your money in sooner as firms need time to process it. And as I said at the beginning, your ISA allowance, use it or lose it, it does not carry over."
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