Opportunities that have Arisen after the Latest Statement from the UK about ISA Savings and what the Changes mean for Consumers in the UK
October 9th, 2009
For investors who are considering how to start on the savings road, the
announcement from Britain’s 11 Downing Street that the annual Individual Savings Account (ISA) allowance is to be upped from its present level of seven thousand two hundred pounds to ten thousand two hundred pounds is deeply welcome indeed and may well tempt a significant amount of potential consumers to create an ISA as the first move in beginning to save for the future.
This big rise in the maximum limit that savers are able to invest annually is a strong indication that the Government wants everyone to save more using this form of investment.
For those not familiar with ISA’s (Individual Savings Accounts), a short summary may be beneficial. ISA’s are now over ten years old and even before the news from the Chancellor they had been considered by many as a stable and reliable form of tax free saving.
No income tax is payable when you invest in an ISA. Add to that the fact that no capital gains are payable on an ISA and the attractions of this form of saving become even more obvious.
Any taxpayer.A taxpayer who is over the age of sixteen can get an isa savings account and they can do so with as low an investment as ten pounds. This highlights a key point in the Governments thinking
behind the setting up of ISA’s - they are intended to tempt more people who have never saved before to start making provision for their future.
Another key point for ISA’s is their versatility. You can pick and choose how you wish to invest. There are varied ways that are available when investing in an ISA ranging from cash ISA’s to stocks and shares ISA’s. You can simply choose the one that you consider to be right for you.
Most people see investing in a cash ISA as a very secure form of investment since the returns are likely to be fixed and should be reliable. On the other hand stocks and shares ISA’s are thought likely to yield more but the downside is that a much higher
element of risk attaches to this sort of investment.
The position a t the moment is that the maximum amount that you can invest into a mix of ISA investments is ten thousand and two hundred pounds and the maximum that can be invested into a cash ISA is five thousand one hundred pounds. For savers whether new to investing or not, ISA’s are a very attractive and versatile type of saving and should not be dismissed when looking at possible investments.
Entry Filed under: Financing