Step 1: Check Your Cash ISA Rate
Martin Lewis, the Money Expert, suggests that the first step to making serious money without lifting a finger is to check your cash ISA rate. By doing this, you can ensure that your savings continue to earn interest tax-free until you withdraw the money from the account.
Step 2: Open a New Top Rate ISA
Many Brits earn very little interest on their cash ISAs, but by opening a new top rate ISA, you could make thousands of pounds more each year. For example, Metro Bank is currently offering 5.71 percent on a one-year fixed rate with one of their cash ISAs. Martin Lewis advises people to get their money out of fixed rate cash ISAs in order to make serious money.
Switching ISAs and Maximizing Savings
Once you have found an interest rate that you like, it's important to follow a specific process to avoid penalties. Instead of simply withdrawing the money, Martin Lewis recommends doing a transfer when applying for a new Cash ISA. This way, the money is moved across for you and you can start making bigger savings on your cash.
Understanding Different Types of ISAs
There are four types of Individual Savings Accounts (ISA): Cash ISA, stocks and shares ISA, innovative finance ISA, and Lifetime ISA. Every tax year, which runs from April 6 to April 5, you can put money into one of each kind of ISA. The maximum amount you can save in one type of account is £20,000, or you can split the allowance across some or all of the other types. However, the maximum amount you can pay into your Lifetime ISA in a tax year is £4,000.
This two-step method recommended by Martin Lewis could potentially help you make serious money without putting in any effort. By checking your cash ISA rate and opening a new top rate ISA, you can maximize your savings and earn more interest each year. Don't miss out on this opportunity to make your money work harder for you!
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