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AFTER RESEARCH FROM THE BANK, 55 PER CENT COULD NOT RECALL THE PRECISE LIMIT WHEN QUIZZED ON ISAS, AMID A RUMOURED CUT FROM LABOUR PARTY CHANCELLOR RACHEL REEVES. 05:39, 09 Mar 2025 Lloyds

Bank has issued a warning over a mistake costing customers - with a quarter impacted. After research from the bank, 55 per cent could not recall the precise limit when quizzed on ISAs, amid

a rumoured cut from Labour Party Chancellor Rachel Reeves. Simon Caddick, Savings Director at Lloyds Bank, says: "We're passionate about empowering people to take control of their

finances. It's key that people feel they have the knowledge to make good, solid financial decisions – particularly as there are lots of options for different savings needs." He

continued: "Our message is simple as we approach the end of this tax year – think 'ISA first' to avoid losing money from your hard-earned savings. It's a great way to

start, and build, a savings pot for up to £20,000 each tax year, and, crucially, it's tax free." READ MORE 68 PER CENT OF DRIVERS RISK £5,000 FINE AT ANY POINT BETWEEN MARCH AND

MAY N early a quarter of UK adults mistakenly believe all their savings are exempt from tax, irrespective of the account type or the sum saved. He said: "An ISA - or Individual Savings

Account - is a tax-free savings or investment account available in the UK with an annual allowance of £20,000 each tax year," he explained. "The money saved in an ISA will grow in

line with the interest rate paid by the ISA provider and the saver won't have to pay any tax on the money earned, unlike non-ISA savings accounts. Article continues below "When a

new tax year starts on 6 April, the contribution limit resets and a further £20,000 can be added to the account, over the new tax year. If savings are held in a 'regular' savings

account, then tax is due on interest above the saver's personal savings allowance. That means different things for different people - for every £100 of interest earned over the personal

savings allowance, a basic rate taxpayer will pay £20 in tax, while a higher rate taxpayer it's £40. Over time the tax bill can add up. "This is a popular ISA, offering lower

growth and lower risk, but the balance is secure. There are also lots of options available – if savers can lock their money away for year and won't withdraw funds, higher rates are

available," he mentioned regarding cash ISAs. He added: "If savers want to take a little more risk, with the aim of getting a higher return, they could invest in a stocks and

shares ISA. These allow savers to hold a range of investments, with any income or gains made free from UK income tax and capital gains tax. Investing in a stocks and shares ISA for at least

five years helps smooth out market movements. Article continues below "It's worth remembering that investments can go down as well as up. Most providers offer stocks and shares

ISAs – including Lloyds Bank through Ready Made Investments. People can either choose from three different levels of risk based on what they feel comfortable with, or pick their own

investments, while managing their own level of risk." He explained further: "The Junior ISA is specifically designed for children and a great way to help them get into a savings

habit. There's an annual savings limit of £9,000 but they're exempt from the individual £20,000 savings limit, meaning a saver could max out their personal annual allowance and

still save into the junior account for their child on top."