It's always a good time to start up or investigate the benefits of an ISA. But the earlier into the new tax year you start to save money into your ISA, the harder you will see it working for you as you will earn more interest over the tax year.
If you do opt for an ISA, you might be interested in an account that offers you access to your money through online and telephone banking. With each of these, you have the ability to keep a close eye on how your savings are doing as well as being able to frequently top up your nest egg more regularly. Of course, one of the main benefits you will also see when you start an ISA is the ability to enjoy tax-free returns on your cash investment.
On April 6th 2010, the allowances for ISAs were increased for all savers over the age of sixteen. This means if you decide to put money into a cash ISA, you can do so up to a value of £5,100. For investors over the age of 18 who are willing to take a risk on the stock market, this also leaves an equal amount available to use in a stocks and shares ISA. Of course, if you do decide to put money into a stocks and shares ISA there is an element of risk involved and as market performance can mean rates go down as well as up you could get back less than you put in.
Advice was published earlier this year by Lloyds TSB that looked at just how consumers can make the most of their money. In Getting your finances fighting fit for the New Year, the bank encouraged people to consider the many benefits of savings accounts including ISAs as a way to strengthen their finances and prepare for the future. Although it was focused on people looking to get their money right at the start of the year, the message is just as relevant all year round.
Lloyds TSB focused on giving your personal finances a workout and explained that a great way to start is by creating a budget. This should consider all of your monthly incomings and outgoings, and this is something a budget calculator can also help with. Once you have built a clearer picture of how your cash is being used, you should be able to get some idea of what kind of regular savings contributions you could make. Rejuvenating your finances by getting a budget together and starting to save is one of the easiest and most rewarding things people can do so there's no time like the present to get started
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