Take advantage of your ISA allowance while you can
If you managed to make use of your Individual Savings Account (ISA) allowance in the last tax year, then you will be pleased to know that as of 6th April, you have another £7,200 of potential tax free investments in which you can deposit into ISAs.
You may not have made use of last years tax free savings allowance, but don’t worry, you can still invest up to £7,200 either all into stocks and shares ISAs, up to £3,600 into a cash ISA, or a combination of the two, allowing you to benefit from tax free returns.
If you haven’t yet considered ISAs as a method of saving, you could be missing out on tax free returns, so it is well worth looking into opening an ISA.
ISAs give UK savers a great incentive to save, by offering a tax-free haven so you don’t have to pay a penny of the returns you earn to the tax man. Everyone aged 16 or over is eligible to the £7,200 yearly tax free allowance, which can be used for both investment and cash ISAs. You can use as much or as little of the allowance as you wish, using up to the full £7,200 in an investment ISA, or up to £3,600 in a cash ISA, and the rest in an investment ISA.
ISAs are similar to savings accounts, with some providers offering fixed rate ISAs allowing people to protect themselves against falling rates for the term of the ISA. Investment ISAs are now becoming more and more popular, as it is possible to make unlimited tax free earnings on your investment. It is common knowledge that with stocks and shares dealing comes risk, and there are no exceptions when it comes to investment ISAs, so you must be careful with where you plan to invest.
The way in which your account is manages will depending on which ISA and ISA provider you choose. Whether you’re looking to invest a one off lump sum at the beginning of each year; you want to make monthly deposits, there are plenty of ISAs that will suit your needs, plus you can decide how and when you want your interest to be paid.
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