Time to top up your ISA
The cost of living looks set to be a hot topic in 2008, and already we've seen increases in road fuel and food prices. While domestic budgets are under pressure, it's a good idea to have something in reserve to meet the cost of any unexpected expenses.
So, if you're looking to boost your savings, with the end of the tax year fast approaching it's the ideal time to invest in an ISA.
What is an ISA?
ISAs, or Individual Savings Accounts, have been popular since they were first introduced by the Government in 1999 to encourage people to start saving. They're often referred to as a 'tax wrapper' which goes round your savings and protects you from paying the usual taxes on the interest. In fact, you don't even have to tell the taxman about ISA investments.
Because they're tax-free, the maximum amounts that can be paid into an ISA have always been strictly controlled, but new regulations coming into force in April this year will see the Government raising the limit for annual investments.
A Mini Cash ISA is the most popular type of ISA and is aimed at savers who want to hold some of their money in an account which pays interest. From 6th April, investors will be able to pay in £3600 in a single tax year compared to the previous maximum sum of £3000. The account will be called a Cash ISA.
For those who want to save their money long-term, from 6 April 2008 up to £7200 can be paid into a stocks and shares ISA. Previously known as a Maxi ISA, these suit investors who are comfortable with risk as the value of the share can change with market fluctuations.
Please note: individuals are able to subscribe to either a cash ISA, a stocks and shares ISA or both, subject to the overall limit of £7200 in a tax year.
ISAs are currently held by more than 16 million investors in the UK and policies are worth more than £180bn.
The Mini Cash ISA from Teachers
You can benefit from tax free savings by opening up a Mini Cash ISA with Teachers Building Society for just £250, (£100 for teachers). Unlike investment products from many other organisations, savings earn interest from each complete day that your money is with us. On top of that, our Mini Cash ISA is an easy access account, meaning withdrawals against cleared funds are free at any time and free of any interest charges.
To benefit from your ISA allowance in the current financial year, make sure you invest by 5th April.
Mini Cash ISA Tax Free Savings Account
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