1. Make the Most of Tax-Free Savings

The government offers ways to protect your money from tax through ISAs (Individual Savings Accounts).

What you can save tax-free in 2025/26:

• Adults: £20,000 each in ISAs (cash or stocks and shares)
• Under 18s: £9,000 each in Junior ISAs
• First-time buyers: £4,000 in Lifetime ISAs (counts towards the £20,000 ISA allowance)

Example: A family with two adults and two children could save £58,000 tax-free each year.

Many medical professionals don't use their full ISA allowance. This could mean paying unnecessary tax on savings growth. Even small amounts add up over time.

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2. Check Your Payslip Every Month

Common payslip errors cost NHS staff thousands each year. Spend five minutes checking these details:

Your tax code: Wrong codes often happen when changing jobs between trusts.

Pay scale: Are you on the correct NHS pay band? Junior doctors moving between trusts often find errors here. Check your payslip against current NHS pay scales online (updated annually).

Pension contributions: Ensure you're in the right NHS pension scheme tier. The wrong tier could cost you money now and in retirement.

Overtime and locum payments: These should match your records. Keep your own notes to cross-check.

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3. Make Your Savings Work Harder

With current inflation rates, money in low-interest accounts loses buying power over time.

Current situation:

• Best instant access savings: Check current market rates (typically around 4% in recent months)
• Many old savings accounts: Under 1%
• Inflation: Check current rates regularly

Note: Interest rates change frequently - always check current best rates before moving money.

Action steps:

• Move money from old accounts to better rates
• Compare accounts monthly
• Consider fixed-rate bonds for money you won't need soon
• Build an emergency fund first (3-6 months expenses)

For larger sums: Once you have emergency savings, consider investing through your ISA allowance. This combines tax efficiency with growth potential.

Many medical professionals keep large sums in current accounts earning nothing. Even moving £10,000 from 0.1% to current competitive rates could save hundreds of pounds yearly.

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4. Review Your Remortgaging Options

Mortgage rates change regularly. If you haven't reviewed your deal recently, you might be overpaying.

When to review:

• Your fixed rate ends in the next six months
• You haven't checked rates for over a year
• Your circumstances have changed (promotion, marriage, children)

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Recent graduate doctors: Many lenders now offer mortgages to junior doctors before they start work, using guaranteed NHS contracts.

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5. Protect Your Most Important Asset

Your ability to earn money is probably your biggest asset. What happens if illness stops you working?

Key protection types:

• Income protection: Pays a monthly income if you can't work due to illness
• Critical illness cover: Lump sum if you develop serious conditions
• Life insurance: Protects your family if you die

Career considerations:

• Understand how your NHS pension death benefits work
• Many policies now include children's cover automatically
• Occupational health assessments might affect some policies
• Consider your specialty's specific risks

Recent changes: Many insurers now offer better terms for healthcare workers, recognising lower risk profiles in many medical specialties.

We spend time choosing car insurance but often ignore protection that could save our homes and families.

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Your Next Steps

1. This week: Check your payslip and tax code
2. This month: Review savings account rates and move money if needed
3. Before your mortgage deal ends: Speak to a mortgage adviser‍
4. Annually: Review ISA contributions and protection policies

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This article provides general information only. It does not constitute financial advice. Everyone's situation differs, so speak to a qualified financial adviser before making decisions.