accounts

BBC Morning Live expert Laura Pomfret has highlighted the top six easy access ISA accounts as savers face the ‘last chance’ to use the full tax-free allowance

A BBC finance expert has outlined which ISA accounts people should be considering as a ‘fresh start’ gets underway. With the new financial year having kicked off on 6 April, savers have the opportunity to make use of cash ISA accounts for up to £20,000 of tax-free savings — and crucially, it’s the final year before this allowance is reduced.

Appearing on BBC Morning Live, finance expert Laura Pomfret explained what people should be doing and highlighted which accounts are currently offering the most competitive interest rates.

She said: “It is a fresh start and there’s an opportunity to make the most of your money and we’re going to start with cash is because the ISA limit resets every year and we’ve got £20,000 per person that we can utilize within cash ISA, stocks and shares is lifetime is a little bit different, but it’s a way of growing your savings tax-free because you know saving is a really good thing and you do make interest on it but if it’s outside of an ISA you will have to pay tax on that interest.”

Those with savings held outside of ISAs remain liable for tax. Ms Pomfret further explained: “Most people get a personal savings allowance per year so if you’re a basic rate taxpayer you can earn £1,000 outside of an ISA tax free it drops to £500 when you are a higher rate taxpayer but basically this is why we should use our ISA allowance first because you can put £20,000 in and not have to worry about any interest that you make you don’t have to pay tax on it.”

Those with ISAs are set to face a significant change from 7th April 2027. She explained: “This is the last tax year before the allowance for a cash ISA drops to £12,000. So this is the last year that you get £20,000 that you can put into a cash ISA, and then going forward from 6th of April next year, 2027, it drops to £12,000, apart from if you’re 65 or over, you can save into a cash ISA, and you get the other allowance. So it’s important to maximise that this year while you can.”

Host Helen Skelton asked: “If you are in a position that you can save money, where should you put it right now?”

According to the BBC expert, there are six accounts worth considering for ‘easy access’ savings. She stated: “Easy access is where you can get it in and out usually without penalty, but you can have a look at the terms and conditions and these are some of the best. So, first up, we’ve got Trading 212 with a 4.6% interest rate.”

“It drops after the first year. Now, to be clear, that is an investment platform as well, but they do have a cash ISA that you can use, and they’ve got a 4.6%. You’ve then got, for example, Virgin Money with a 4.15%. You are limited to two withdrawals per year on that. So, it’s classed as an easy access, but there are some limits to withdrawals.

“So, Bank of Ireland UK 4.06%. The rate drops after a year with that one. It’s like a you know in a new rate, and then interest is paid annually. Leeds Building Society of 4.05%. You have to pay in a minimum of £1,000 to get that one. Um, Yorkshire Building Society, 4.05%, withdraw as often as you want. And then Tesco Bank, for example, 4.02%, the rate drops after a year. With that one, you can do it over the phone. The rest are all online or using the app. But these are just examples. These rates change quickly.”

Top ISA easy access accounts highlighted

• Trading 212 4.6%
• Virgin Money 4.15%
• Bank of Ireland UK 4.06%
• Leeds Building Society 4.05%
• Yorkshire Building Society 4.05%
• Tesco Bank 4.02%

She explained that, generally, individuals should check comparison websites for terms and conditions, with at least 4% interest being the crucial figure.

She continued: “You may get higher if you go for a fixed, but this is where your money can be fixed and locked away for one, two, three years. So this is about choosing what’s right for you.

“If you can afford to put some away and not need access to it, you might beat that rate with a fixed one. And obviously, as I said earlier, there’s also stocks and shares is you could look at a lifetime is if you fit the criteria, but ultimately getting it in tax wrapper is a great thing to do so that you can you know grow your interest tax-free.”

April 6 (UPI) — The Department of the Treasury announced Monday that The Bank of New York Mellon Corporation will handle the Trump Accounts program and that Robinhood will be the brokerage and initial trustee.

BNY will manage the initial accounts and develop the Trump Accounts app.

“Together, these partners will support Treasury’s goal of ensuring every eligible child can access a Trump Account quickly and easily,” a press release from the Treasury said.

The accounts are tax-deferred investing accounts for children born between 2025 and 2028. They are scheduled to launch on July 4 with a $1,000 deposit from the Treasury.

BNY and other large employers have pledged to match the government’s deposits for children of their U.S. employees.

“We are honored to be selected as financial agent for Trump Accounts,” BNY CEO Robin Vince said in a statement. “In collaboration with Robinhood, a leading financial technology platform committed to democratizing the markets for investors, we are helping to expand access to financial opportunity for all Americans.”

The Treasury press release said the app is being developed as a custom, white-label product. The National Design Studio, along with Robinhood, is creating an intuitive user interface and user experience that allows “families to explore their Trump Accounts with confidence and ease.”

Vlad Tenev, chair and CEO of Robinhood Markets, said in a statement that the company is “proud to power Trump Accounts with Robinhood’s technology and to work alongside a historic and trusted institution like BNY.”

“Our task is clear: to provide the next generation of Americans with a world-class, intuitive platform to jumpstart their financial future,” Tenev said.

The IRS said that as of March 31, more than 4 million children were signed up for Trump accounts, and more than 1 million were eligible for the $1,000 pilot program.

“The IRS has been working closely with the Treasury Department to make the election process as simple and easy as possible by permitting taxpayers to fill out a one-page form when they file their tax return,” IRS Chief Executive Officer Frank J. Bisignano said in a statement. “Families with eligible children born between 2025 and 2028 just need to check the box on a form to stake their claim for the $1,000 contribution. It’s that simple.”

Parents can sign up for the funds by filing IRS Form 4547 with their tax returns or via TrumpAccounts.gov. There will be an authentication process in May, and the money will be in accounts on July 4, the IRS said.

Parents and others can contribute up to $5,000 a year. Companies can deposit up to $2,500 pre-tax per year for kids of employees, within the $5,000 limit.

“It’s good to see BNY and Robinhood being named, it gives us more clarity,” Madeline Brown, senior policy associate at the Urban Institute, told CNBC.

“There are certainly still questions that remain about what the interface and product will look like for account holders … and how financial planning and coaching may be integrated. Given that at least some participants will be new to long-term savings, there is this need for advisor-type guidance.”