What is the ISA allowance for 2014-15?
With only a few weeks to go until the end of the financial year, are you making the most of your ISA?
Do you even have an ISA? If not it may be something to consider…
If you do already have an ISA, and haven’t already used up your full allowance – which by the way this year is £11,520 (£5,760 for Cash ISAs only) – then you can still pay into your account until the end of the tax year on 5th April 2014.
If you have the opportunity to do so, it’s certainly worth trying to use up as much as your allowance as possible.
Typically, ISA accounts have had better rates of interest than standard savings accounts – although with interest rates as low as they are at the moment, this may not currently be true!
However the beauty of ISAs is that the interest that you earn is tax-free up (up to the allowance limit) so the more you can save, the better your tax-free bonus will be.
New ISA Allowance 2014-15
The good news for 2014/15 is that the ISA allowance limit will rise, so you will have the opportunity to save even more over the course of the year.
From 6th April, the total ISA limit (including Stocks and Shares ISAs) is rising to £11,880 allowing you to save up to £360 more over 12 months. The Cash ISA allowance rises to £5,940.
Which ISA is right for me?
There are different types of ISA available, so it’s worth doing a little bit of research, particularly if you are new to investing.
Why not take a look at our ISA guides for more information?
As with any financial product it’s wise to shop around to get the best deal and look for something that will fit your particular requirements.
If you only have a small amount to invest to start with there are accounts that will allow you to start saving with a minimum of £1, however other accounts may expect you to have a much higher opening balance (if you have the funds available in another account, it may be worth transferring into an ISA, as these accounts may offer better rates of interest).
It’s also worth paying attention to how you can access your money from an ISA. Some accounts may offer higher rates of interest, but you may be expected to lock in your funds for a certain amount of time. If you’d prefer something a bit more flexible, then look for an easy-access account which will allow you to make withdrawals (this could affect your annual bonus however, so make sure you are aware of any terms and conditions on the account).
Why not compare ISAs today to find out what is available?
The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media or the Mitchell Farrar Group.