Martin Lewis shares three questions to work out if cash ISA is right for you

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. But, due to the personal savings allowance, few people with savings accounts pay tax on interest, as all basic 20 per cent rate taxpayers can earn up to £1,000 interest in savings before being taxed. On Tuesday’s episode ofThe Martin Lewis Money Show, Mr Lewis argued that is the interest rate that counts, adding that cash ISAs usually pay less than normal savings. But he also raised several caveats, and urged people considering opening or keeping a cash ISA to ask themselves the following three questions: Are you already paying tax on savings interest? If that is the case, Mr Lewis says opening a cash ISA rather than saving in normal savings is a “no brainer” Are you near the limit where you will earn enough interest to pay tax on interest?