Martin Lewis clarifies ISA deposit rules as 'that's exactly how it works'

ISAs are tax-free as long as you stay within certain limits Martin Lewis explained the rules around ISAs (Image: ITV)

Financial expert Martin Lewis has clarified the workings of ISA allowances. The founder of MoneySavingExpert spelled out the rules for the tax-free accounts on his BBC podcast . At present, you can deposit up to £20,000 each year into ISAs.

Savers can split this allowance between cash ISAs and stocks and shares ISAs. One of the key benefits of ISAs is that any interest or investment gains accrued within these accounts are entirely tax-free, as long as you don't go over your yearly limit.

A listener reached out to his BBC podcast to ask for clarification on how these annual limits work. The listener proposed a hypothetical scenario where someone maxes out