Thousands of ISA savers become millionaires with top pots averaging £6.2million | Personal Finance | Finance
This ultimately sees £434,000 tax free interest for an ISA holder with £6million.
In comparison, for an ordinary employee paying taxes to make this same amount annually, they would need a salary of £842,000 before taxes.
On the lower side of the spectrum, pots worth £1million can expect an annual tax free return of £70,000, but to get this same amount through salary, one would need to earn £117,000.
The disparity here also showcases the impact that National Insurance, income tax and pension contributions has on the amount of income one actually receives compared to what’s written on their contract.