A. If your savings are below £5,640 and in an easy-access savings account, then the answer is definitely yes. Despite inflation falling to 2.5%, there are currently no easy-access savings accounts on the market that offer interest rates above this, meaning your savings won’t actually be earning you anything. Plus, you’ll be taxed on any interest earned.
If you still want easy access to your savings, the best idea is to move the money into a Cash ISA that allows instant access. Sainsbury’s offers an instant access Cash ISA at the moment with an interest rate of 3.01%. You can save up to £5,640 a year tax free in a cash isa, with no penalties to withdraw money. Visit Sainsbury’s Bank for more info.
Andrea Ventress, Money expert
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