Savers urged to max out this allowance and you could get extra £690,0000 tax-free

Time is running out to use up your savings allowances for this tax year and you can get some substantial returns by maxing out your deposits.

Matthew Parden, financial planner at Marygold & Co, spoke about the substantial benefits of using up your allowances. He urged: "With the tax year ending in April, now is the time for Brits to make the most out of their ISAs, pensions, and savings allowances before they reset."

He focused in on the ISA allowance, which allows you to deposit up to £20,000 across the different types of ISAs, including cash ISAs and stocks and shares ISAs. Any growth in your funds from dividends or interest is entirely tax-free.

Explaining how this can accrue over time, Mr Parden said: "Investing the full ISA allowance of £20,000 annually into a stocks and shares ISA with an average 5% return, could grow to around £690,000 over 20 years - completely tax-free. In contrast, the same investment outside an ISA could see tax deductions on dividends and capital gains, reducing returns.

He also said it's a good idea to max out your pension contributions as early as you can, so your pension pot can compound its growth over time.

There are major tax benefits for your pension contributions too. Mr Parden explained: Contributions benefit from tax relief at your marginal rate - so a basic-rate taxpayer putting in £8,000 will see this topped up to £10,000, while a higher-rate taxpayer could claim back an additional £2,000 through their tax return.

"If you are fortunate enough to earn over £100,000, you face a marginal rate of tax of 60% on earnings above this amount (up to £125,140) because of the gradual withdrawal of the personal allowance, which is known as the tax trap.

"If you earned £110,000 and made a pension contribution of £10,000 you would in effect only be paying £4,000 to get a £10,000 benefit. Ignoring these allowances could therefore, mean missing out on significant tax savings and long-term financial growth."

The end-of-year deadline may still be more than two months away, but the financial expert urged people to move their money around as soon as they can.

He wared: "Leaving it too late could lead to rushed decisions, potential delays with providers, and even missing deadlines altogether.

"By planning ahead, you give yourself time to make informed choices, ensuring your money is working as efficiently as possible."

If you are thinking of topping up your National Insurance (NI) contributions towards your state pension, this April marks another important deadline.

At present, you can pay for contributions as far back as the 2006/2007 tax year, whereas usually you can only do so up to six years ago. This extended period to top up is only available until the end of this tax year.

Mr Parden said: "If you have missing NI years from the 2006-2016 period, it's crucial to act now before the deadline, as this could be a cheaper and more beneficial way to increase your state pension."

You can check your NI record for any gaps and also pay voluntary NI contributions through the Government website.