With the 24/25 financial year drawing to a close, it marks the deadline to meet the £20,000 tax-free allowance for those stashing away their savings in an ISA. But if you don’t have an ISA, whether you’ve never heard of them or simply aren’t sure where to start, the new financial year which starts on Sunday, April 6 is the perfect time to reassess saving strategies and goals, according to Bola Sol, money expert at Nationwide Building Society.

The financial adviser explained how savers can use the 50/30/20 rule to make sure they are saving enough towards their goals.

Sol said: “Many people across the UK will be thinking about how best to save (and stretch!) their cash, whether it’s a financial spring clean, saving for a big occasion or navigating changes from the recent Spring Budget and increased energy price cap.”

Sol then explained how the 50/30/20 rule could be used by ISA savers.

“Each month, spend 50% on your needs, 30% on wants, and then put 20% aside for savings or debt repayment.

“That 20% is where your ISA can shine.

“Whether it’s a flexible cash ISA for emergency savings or a Fixed Rate ISA for longer-term goals, using your ISA allowance before the deadline helps grow your money tax-free.”

Other things savers need to bear in mind is what type of ISA they need and what interest rate they are being paid.

Sol said: “When it comes to choosing an ISA, it’s important to align the product with your short or long-term goals and consider the accessibility options. Many offer different terms and returns, so why not utilise an account comparison tool.

“If you’re looking for flexibility, a Cash ISA can be useful for short-term savings, but if you’re building for the future and comfortable locking money away, a fixed rate ISA may offer better returns over time.”

The expert added that when choosing the right account, it’s important to understand how interest is calculated. Looking at whether it’s daily, monthly or annually, can help you maximise the benefits of compounding, creating exponential growth on your savings.

Sol said: “Interest rates on ISAs vary depending on the type and term. Fixed-rate ISAs typically offer higher returns, but your funds might be locked in for a set period. On the other hand, although easy-access ISAs provide greater flexibility, they typically come with lower interest rates, meaning they’re not always the best option for accumulating earnings on your savings long term.”