Money Saving Expert UK Savings ISA

Compound Interest Formula:

\[ FV = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Principal Amount (P):

GBP

Annual Interest Rate (r):

Compounding Periods Per Year (n):

Time Period (t):

years

Future Value (FV):

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1. What Is The Money Saving Expert UK Savings ISA?

The Money Saving Expert UK Savings ISA is a tax-free individual savings account available to UK residents. As of September 2025, these accounts offer up to 4.38% tax-free interest according to Money Saving Expert recommendations, helping savers maximize their returns while protecting their earnings from taxation.

2. How Does The Calculator Work?

The calculator uses the compound interest formula:

\[ FV = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Where:

\( FV \) — Future value of investment (GBP)
\( P \) — Principal investment amount (GBP)
\( r \) — Annual interest rate (decimal)
\( n \) — Number of compounding periods per year
\( t \) — Time in years

Explanation: The formula calculates how your initial investment grows over time with compound interest, where interest is earned on both the principal and previously accumulated interest.

3. Importance Of ISA Savings

Details: ISAs provide a tax-efficient way to save money in the UK. Any interest earned is completely tax-free, which can significantly boost your savings over time compared to taxable accounts. The compound effect means your money grows faster the longer you leave it invested.

4. Using The Calculator

Tips: Enter your initial deposit in GBP, the annual interest rate (up to 4.38% as of September 2025), select how often interest is compounded, and specify the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current ISA allowance?
A: For the 2025/26 tax year, the annual ISA allowance is £20,000 per individual, which can be spread across different types of ISAs.

Q2: Are there different types of ISAs?
A: Yes, there are Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs, each with different features and rules.

Q3: Can I withdraw money from my ISA?
A: Yes, you can withdraw from a Cash ISA at any time, but this may affect your annual allowance if you want to reinvest.

Q4: Is my money safe in an ISA?
A: Cash ISAs are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person, per institution.

Q5: Can I transfer ISAs between providers?
A: Yes, you can transfer your ISA to a different provider, but you should do this through the proper transfer process to maintain the tax-free status.