The new financial year is almost upon us – have you started thinking about your ISA yet?
If you have an ISA and haven’t already invested your full allowance – you still have until 5th April to do so.
ISA accounts tend to have a higher rate of interest than basic savings accounts so if you have the opportunity to do so, it’s certainly worth maximising your assets by using your full allowance of £11,280 including Stocks and Shares ISAs (£5,640 if just investing in a Cash ISA)
New ISA Allowance
The good news for the 2013/14 is that the ISA limits are rising, so you will be able to save more over the course of the year.
From 6th April, the total ISA limit (including Stocks and Shares ISAs) is rising to £11,520 allowing you to save up to £240 more over 12 months. The limit for Cash ISAs rises to £5,760.
ISAs are a great investment option, as any interest you earn on the account is completely tax-free. There are different types of ISA available to you, so as with all finance products you should make sure you shop around to get the best deal.
If you are new to investing, you may only have a small amount to save, so look for an ISA suitable for your particular requirements. There are some accounts that will allow you to start saving with a minimum of £1 but others may ask for a higher opening balance so make sure you compare details like for like.
If you want investment without the risk, then a Cash ISA is ideal for you. If you would rather speculate to accumulate then the Stocks and Shares ISA is a good option to look into.
It’s never too late to start saving your future – whether you have a pension or not, an ISA is a good way of saving for your future.
Some ISAs will allow easy access so if you do need access to your funds, you will be able to make withdrawals, but there are other accounts which offer less access, so if you are looking for a long-term option of saving then this could work for you.
For those wishing to start saving for their child’s future, the Junior ISA limit rises to £3,720.
Junior ISAs allow you to save long-term for your child. Until your child reaches the age of 16 the account is held in your name, and withdrawals are not allowed until their 18th birthday so the temptation to withdraw funds is removed. That means any savings that have been invested will turn into a nice little nest egg for your loved ones when they reach adulthood.
If you would like to start your investments with an ISA then why not visit SO Switch and take a look at the accounts that are available. The easy to use best buy tables will help you to compare a number of different products from leading providers and if you find the right deal for you, you can apply in a matter of minutes.
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Post by Heather Collin