🚨 Important Savings Alert for DWP Claimants! 🚨
Martin Lewis is at it again with another crucial tip for those relying on benefits and with some cash stashed away! If you’re on Employment and Support Allowance (ESA) or Carer’s Allowance, this one’s for you.
💡 A couple in their 50s, living on these benefits, asked about paying tax on the interest from their £150,000 savings. To their surprise, Martin suggested they were asking the wrong question in the first place! With their savings generating just £2,300 annually, they could do much better.
🔍 Here’s the scoop: With savings accounts offering upwards of 4% interest, they’re potentially missing out on thousands of pounds! By switching to a higher-rate account, the couple could turn their £2,300 interest into nearly £5,000. Imagine an extra £2,700 every year!
💰 And there’s more! To make the most of their money, Martin advises checking out ISAs (Individual Savings Accounts). With a £20,000 annual deposit limit per person, ISAs could be a game-changer by offering tax-free interest benefits.
👀 There’s also an additional allowance called the “starting rate for savings” – a further £5,000 buffer before you’re hit with tax on interest. And basic rate taxpayers can earn up to £1,000 in interest tax-free each year.
💬 Bottom line from Martin: “Make your savings work their hardest. If you’re not getting the best rate, it’s time to move!”
So, if you’re sitting on savings while receiving DWP benefits, it’s worth taking a closer look at your options. You might just boost your annual income considerably. Happy saving! 😄💷