Are you tired of seeing tax taken out of your hard-earned savings? While this is a legal requirement with most savings accounts , ISAs (or individual savings accounts) don’t have this potential drawback. These tax-free accounts let you keep all of the interest on your savings, which can be a very enticing offer – while there are certain limitations to amount of money you can store in them, they are a useful tool for managing your finances.
Cash ISA Basics
One of the basic requirements for a cash ISA is to be a UK citizen over the age of 18. As mentioned, there are limits for the maximum amount anyone (regardless of age or earning power) can deposit. Currently this savings allowance is £5,640 – but this applies for one financial year only and the amount is revised on an annual basis. If you have money to spare, you can deposit this new amount of money into your IS account.
Getting A Cash ISA
While applying for a cash ISA is relatively simple , it is still crucial to find a bank that’ll best suit your saving needs. By going online to do a simple cash ISA comparison between the offerings of all the major high-street banks, you can make an informed decision. Interest rates may be one of the most important areas to consider (as well as ensuring they are long-term and don’t drop over time) but it is also key to find one with a very strong reputation that will handle your money effectively. Most reputable banks offer an online ISA application process, provided you have the appropriate personal identification and proof of address. If you’re a new customer at that bank, you will have to make a minimum deposit in order to open the account, while if you are existing banking client, you should be able to simply transfer funds. In either case, you are setting yourself up for a stronger financial future with this very simple step.