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Cashback On Finance And Shopping |
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APR Rates
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ISA AdviceBeating the taxman with an ISA : An ISA ( stands for " Individual Savings Account ") it is a tax free savings scheme, launched by the UK Government in April 1999. It enables taxpayers both emplyed self employed and those reitred to benefit from earning a tax-efficient return on their savings , it was introduced as an incentive to get the public to borrow less and save more
Investing wisely in ISAs is part guess work part skill so it might be worth seeking professional advice . If you are interested in a relatively safe medium to long term investment that saves you tax then an investment ISA might be well worth considering. Cash ISAs are also available which are akin to savings accounts . Income Tax Savings : By placing your money in an ISA you shield it from the taxman , most people pay tax at 20% unless you are on a very low or high income (the high rate is 40% !)
There are two main ISA options : Mini ISA:there are three different Mini ISAs - cash, stocks & shares and life insurance. Maxi ISA:maxis allow you to include stocks & shares, with the option of including either or both of a cash or life insurance element. How do ISAs work?Maxi ISAs allow you to invest a maximum of £7,000 in any tax year. By subscribing to these ISAs you may not subscribe to another ISA in the same tax year. If you invest in a Mini Cash ISA, you will still be able to take out a Mini Stocks & Shares or Mini Insurance ISA in the same tax year as long as the spread of payments does not exceed £7,000. For example, you could plan your investment as follows:
Table details correct as of 2006 EOE Investment Risks Of ISAsCash ISAsthese are the least risky they are like savings accounts except of course you have to pay no annual tax on your income from the interest you earn Investment ISAsThese vary in risk , and most banks and building societies will happily discuss with you at length the risk levels , stocks and share and investment trust ISAs can go up as weel as down so you could feasibily end up in the short term with less money than you put in , however historically in the long term ( 5 years + ) you should see investments out perform any savings account and in the last few years the yields have been good . High risk ISAsthese are overseas stocks , medium are FTSE Isas and low risk are ISAs based on government bonds and cash ISAs . With investments you can get a managed account and usually pay a small percentage of about 1% , this may suit you if you have no understanding of the investment market . You can however do all the hard work and choose your investments . It is worth keeping an eye on the interest rates in cash ISAs and if they fall to a less competitive rate , ( just like utility companies )you can consider switching to another provider . Some ISA companies seem to take you for granted and assume rightly you will stay put , but it is worth assessing your rates of ISA interest on cash accounts regularly . Gordon Brown in the 2008 budget has continued the ISA levels with a very small rise in the allowance for 2008. Don't forget the April 5th end of fiscal year deadline for using up your ISA allowance ! Where to find the best ISAsNearly all the banks and building societies have ISA advisors and these are also listed online - try our search box top of the page The information presented on this page is for guidance only , finance-help can not be held accountable for any inconsistencies , errors or ommissions .
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