Martin Lewis warns 'millions are wasting money' as he urges savers to take action

Martin has warned that millions of Brits are missing out on a significant amount of cash. Speaking on this week's episode of the Martin Lewis Podcast, he discussed the benefits of having a cash ISA and why people should be putting some of their savings into one. Martin warned on social media that "millions are wasting money by not being in cash ISAs when they should."

A cash ISA is simply a tax-free savings account that can be opened with as little as £1 and allow savers to keep it tax-free each year as long as they don't take any money out. Martin further explained that while the official deadline to use up this year's allowance for a cash ISA is April 5, people should do it a bit earlier because "there's bureaucracy and administration" which could lengthen the process.

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He added: "There's a whole raft of people who as long as you've got the top accounts... if you have money in savings and you have a substantial wad and you're a basic or higher or top rate taxpayer, then you should be protecting some of it in a cash ISA because that is totally tax-free."

Later on in the show, he explained that people should put their savings into where it can be "maximised", stating that "if you're a tax payer a cash ISA is nicer, if you're not a taxpayer, in most cases normal savings give higher rates than cash ISAs so put your money in normal savings".

It's important to highlight that there are different types of cash ISAs which all come with their own rules. Generally, an easy access cash ISA allows customers to take out the money whenever they want and has a variable interest.

Meanwhile, a limited ISA allows customers to take out money