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How an ISA works

6th March 2025

Unless you’re an accountant, or the Chancellor of the Exchequer, the start of the new tax year probably isn’t marked on the calendar on your kitchen wall.

But perhaps it should be. 6 April is a key date for all of us, and when it comes to saving, being prepared will help you make the most of every penny you can put away.

ISA allowances are based on the tax year, rather than from January to December, and taking the time to prepare will help you take full advantage of ISA saving.

Remember you must be 18yrs old and over to open an ISA and you must be a UK resident.

A great way to save well

Saving is a great habit to get into, and ISAs help you maximise the benefits by keeping any gains free from tax.

Even if you don’t have much to spare, saving little and often helps make saving a habit, and monthly payments into an ISA will soon start to add up.

Have a look at our ISA guide, so you’re armed with the knowledge you need to decide how you can make an ISA work best for you.

How to have a happy new (tax) year every year

There are two very good reasons to get yourself ISA-ready in plenty of time.

Firstly, to make sure you make the best use of your allowance.

ISAs let you save money without paying tax on interest or any investment returns but there are strict limits on how much you can save. To find out what the current tax limits are, have a look at our ISA guide.

If you won’t get close to the limit, that may not matter to you, but if you are able to save the full allowance, make sure you have used it before the end of the tax year on 5 April.

And secondly, if you have done your research in advance, you will have time to open the very best ISA for you on 6 April, so your money will be working for you from day one.

You can now open and subscribe to multiple cash ISAs and multiple stocks and shares ISAs each tax year.

Your action plan

  • Budget - make the most of your allowance and max out your savings every year
  • Research - make sure you take out the ISA that works best for you
  • Plan - put a note in your diary for next year so this becomes an annual habit

This is not intended to give financial advice or a personal recommendation. Tax-free means the interest paid will be free from UK Income Tax. The tax advantages depend on your individual circumstances and the tax treatment of your ISA may change in the future.

How can TSB help?

Our Money Confidence Experts are ready to chat to you about achieving your savings goals. You don’t have to be a TSB customer to access the great range of advice, and you can book a video call or an appointment in branch by visiting the website here.

Whether you already have a solid plan in place and need a little advice on how to get started, or you are worried about how to start your ISA journey, TSB is here to listen.

Video call from home
Available by appointment 7 days a week.

Speak in person
At one of our branches, or pop-ups during opening hours.


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