Want to make and save £500 a month for your ISA? The tax-free allowance for the 2022 financial year is £20,000. So, rather than have your savings languish in an ordinary account, make the most of the tax benefits ISAs bring. In today’s low-interest environment, taking full advantage of your tax-free allowance is more important than ever.
Don’t have enough savings to take full advantage of your tax-free allowance? Don’t worry. If your finances are already stretched to the max, we’ve got some great ideas to help you accumulate enough savings to make a healthy looking cash ISA in a year. Anyone can do it – so read on for all the tips you need.
- The best ISAs on the market
- How to make and save £500 a month for your ISA
- Cut your living costs
- Shop wisely
- Make money online
- Make money in your spare time
Don’t know where to start and want the full lowdown on tax-free saving? Take a look at our guide to the best ISAs.
For an ISA that’s easy access and won’t penalise you for withdrawing money from your account, we recommend:
- Shawbrook Bank – 0.98% Fixed Rate Cash ISA. At 0.98% AER, Shawbrook Bank’s ISA is one of the best on the market right now. The account requires a deposit of £1,000 and allows easy access to pay in and withdraw money whenever you like. You can easily apply for the account online.
If you’re looking to transfer existing cash ISA funds into a better account, we recommend:
- Hodge Bank – 1.25% 2-Year Fixed Rate Cash ISA. Yes, it is two years instead of one, but at that rate it’s hard to say no. You must put in £1,000, however there is a penalty for withdrawing before the 2 years is up. Please note, you can only deposit money into this account at opening.
From 6 April 2021, the government increased the amount of money you’re allowed to wrap an ISA around to £20,000 per tax year. You can split this how you like between a cash ISA and a stocks and shares ISA.
If you do the basic maths, you’ll realise that to fulfill your annual allowance of £20,000 a year, you’d need to set aside £1,667 a month. However, that might be a big ask. But, if you can save £500 a month you could have a cash ISA of £6,000. Anything more you should consider putting into a stocks and shares ISA anyway.
The good news is, saving £500 might not be as hard as you think! How do you reach that magic number? We have a few recommendations.
It can be easier to cut down on non-essential spending, such as buying clothes or new technology, than cutting down on essentials such as food and bills. However, there are ways you can cut your utility bills, broadband and insurance costs, if you are savvy about it.
Luckily for you, here at MoneyMagpie, our mission is to save you money whenever possible.
Let’s start with one of the costs we all face on a recurring basis. Mobile phones can drain our bank accounts, however there are many ways to save on your bills. Check out our top 10 tips to save on your phone bill here. Our tips include switching provider, recycling your old phones and more!
When it comes to landline phones, well…they are becoming a thing of the past. Once households were unable to be without one, but with technology in the palm of our hands (literally), there is less demand for them. So, if you have a landline that you never use, it may be worth getting rid. You are likely being charged monthly for line rental.
We also have a great article all about reducing the cost of your smartphone. Check it out here.
When it comes to saving money on your bills, we have you covered. Back in October, our founder and personal finance expert Jasmine Birtles hosted a free webinar all about saving money on heating bills and within the home. You can watch the webinar and read the summary here, or watch the video below. She was joined by expert guests who gave great tips and tricks about saving on your bills. The best part is, they are all easy and don’t cost you a bomb.
If you have a little money available, it may be well worth investing in good insulation for your home. You may even be unsure whether your insulation is doing the trick. Next time there is frost or snow in your area, stand outside of your house and look up at your roof. If all the snow and ice is melted, or is melting faster than that of your neighbours, your insulation may need updating. Yes, it is an upfront cost, but will save you plenty of money in the long run. You can read our guide to getting insulation here.
We also recommend checking out our article about smart meters, and how they can save you some serious money on your bills. Saving energy in summer is just as important as in winter. You may be using energy in your home you don’t need, or don’t even realise you are using. Check out our guide on how to save energy in summer here.
Food shopping is the most essential of all bills. It is imperative to feed yourself and your family, and there should never have to be a choice between heating and eating. It is important to make sure you always get the best deals when you go shopping. Check out our 8 Sneaky Supermarket Tricks to help you save extra pennies every time you shop.
We also released a recent Boxset Newsletter, all about food – specifically how to save money on it. Check it out here – and don’t forget to sign up to our newsletter so you don’t miss out on future money saving tips, direct to your inbox.
We also have a great 7 step guide on how to save money on food, without compromising on quality. From bulk buying to shopping online, using loyalty cards to avoiding pre-prepared food, we have everything you need to know in one easy to follow guide.
Don’t forget, there are amazing apps available that allow you to get food for free! Olio and Too Good To Go are just two of the names leading the way in fighting food waste. All the while, you can get your hands on delicious food the supermarkets can no longer sell. Check it out now.
If you are a vegan, or thinking about lowering your meat and animal product consumption, but are unsure how to manage on a budget, don’t fear! We have you covered with plenty of delicious, low-cost vegan recipes.
If you’re shopping online, it’s definitely worth checking out cashback sites. They give you money back on products you buy through them. This can save you a fair few pennies – just make sure the product you’re buying via a cashback site isn’t available cheaper elsewhere – it doesn’t make sense to buy a TV on a site offering 10% cashback if the TV is included as part of a half-price sale somewhere else! Our favourite flashback sites include TopCashback, Quidco and Honey.
Get your money sorted for 2022!
We also recently hosted a free webinar – How to get your money sorted for 2022! You can read the summary of the key points here, or watch it below. There was plenty of discussion on how to save money on your food shop. Definitely worth a watch in our opinion!
If you are a long-time reader on MoneyMagpie, you will be aware of how much we love paid surveys as a way to make money on the side. It all adds up, and you can earn whilst watching TV, having a bath or waiting in line at the supermarket.
Sign up to an online survey website and get paid to answer questionnaires. Normal pay rates for completing a survey can be anything from 20p to £10 – typically, the longer the survey, the higher the reward. Most surveys are fairly short and don’t take much time to complete.
Sites we recommend include:
There are also more traditional ways to make cash online – why not get rid of unwanted household goods (from clothes to electronics) by selling them on eBay? Did you know, old cassette tapes and CDs are in high demand at the moment? Plus, you’re bound to have old books and games long around. Why not hop online and see what you can shift?
Making money in your spare time is easier than you think. You may be thinking, “But I don’t have any spare time!”. Well, some of our tips and tricks can be done on the go, whilst you are watching your favourite film or even without you trying.
Starting with our 22 Ways to Make and Save Money in 2022. With 11 ways to make money and 11 ways to save it, there will be at least one method of cash making or saving to fit around your lifestyle.
We also have hundreds of other ways to make and save money, to help you top your ISA up. Here are some of the articles that may interest you: