Lloyds Bank issues warning to customers after rule 'reset' in April

Lloyds, which is rivalled by the likes of Santander, HSBC UK, NatWest, Barclays and more, has emailed customers and said: "Here's your new year tax alarm."

Lloyds has issued a warning to bank account holders after a rule "reset" in April. Lloyds, which is rivalled by the likes of Santander, HSBC UK, NatWest, Barclays and more, has emailed customers and said: "Here's your new year tax alarm."

Lloyds has written to customers and explained: "Your ISA allowance reset on 6 April and that can be big news for your money. Why? It means the idea time to save with an ISA and keep more of your money. And that might help get you to your goals even sooner."

Cash ISAs are a smart choice for short-term goals. They offer reliable interest rates, making them great for building an emergency fund, saving for a holiday or buying a car. Plus helping your money stay safe and easily accessible.

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Investment ISAs also known as stocks and shares ISAs, can grow more over time, ideal for medium to long-term goals. Such as saving for a house deposit, funding children’s education or growing wealth for long-term financial security.

Individual Savings Accounts, ISAs for short, give you the opportunity to save or invest tax efficiently. So you don’t have to pay any tax on your savings and your investment profits are free of Capital Gains and UK Income Tax.

You get an ISA allowance each tax year, a capped amount that you can put into one account or spread across several ISAs if you’d prefer. At the moment, the allowances are up to £20,000 in personal ISAs or up to £9,000 on behalf of a child in a Junior ISA.

Lloyds said: "Choosing the right ISA depends on a few things. For instance, over what time period do you want to reach your goal. Or, do you think you may need to access your money.

"We've built a handy ISA options tool to help you decide which ISA could be right for you. This ISA options tool is not a recommendation or advice, but for guidance only.

"Tax treatment depends on your individual circumstances and may change."