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Cash Isas: to scrap, or not to scrap?

The article from MSN discusses the ongoing debate about whether Cash ISAs (Individual Savings Accounts) should be scrapped in the UK. Cash ISAs allow individuals to save up to £20,000 annually with tax-free interest, but with the current low interest rates, their benefits are under scrutiny. Critics argue that with the Personal Savings Allowance (PSA) introduced in 2016, which allows basic rate taxpayers to earn up to £1,000 in interest tax-free outside of an ISA, the necessity of Cash ISAs has diminished. However, supporters highlight that for higher rate taxpayers, or those with larger savings, Cash ISAs still offer significant tax advantages. The article also mentions that while some financial experts suggest that Cash ISAs might be phased out or reformed, others believe they remain a valuable tool for savers, especially in a climate where interest rates might rise, making the tax-free aspect more beneficial. The debate continues as the government and financial analysts weigh the utility of Cash ISAs against other saving options in the modern financial landscape.

Read the Full MSN Article at:
[ https://www.msn.com/en-gb/money/economy/cash-isas-to-scrap-or-not-to-scrap/ar-AA1z91wX ]