A Few Thoughts on the Latest Statement from the Government about ISA Savings and What it Will Mean for Consumers in Great Britain
For those looking for a chance to set off on the savings route, the
statement from Britain’s Chancellor that the yearly Individual Savings Account (ISA) allowance is to be raised from its current level of seven thousand two hundred pounds to ten thousand two hundred pounds is extremely welcome indeed and will probably tempt a substantial amount of potential consumers to open an ISA as the initial move in commencing to invest for the future.
This significant jump in the maximum limit that investors are able to invest annually is a clear indicator that the British Government wants everybody to save using this form of investment.
For those not familiar with ISA’s (Individual Savings Accounts), a quick summary may be of interest. ISA’s are now over ten years old and even before the news from Alistair Darling they had been considered by many as a stable and safe form of tax free saving.
For a start 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 perks of this type of saving become even more clear.
Any taxpayer.A taxpayer who is over the age of sixteen can begin an isa savings account and they can do so with as small an investment as ten pounds. This demonstrates a fundamental point in the Governments thinking
behind creating ISA’s – they are intended to encourage more people who have never saved before to start making provision for their future.
Another key point for ISA’s is their flexibility. You can decide for yourself how you wish to invest. There are various ways that are available when saving in an ISA ranging from cash ISA’s to stocks and shares ISA’s. You can just select the one that you think to be right for your needs.
Most people see investing in a cash ISA as a really secure sort of investment since the returns are likely to be fixed and should be reliable. On the other hand stocks and shares ISA’s are considered likely to yield more but the snag is that a much higher
level of risk attaches to this type of investment.
Presently the maximum amount that you may invest into a mix of ISA investments is ten thousand and two hundred pounds and the maximum that may be invested into a cash ISA is five thousand one hundred pounds. For consumers whether new to investing or not, ISA’s are a strong and versatile type of saving and should not be discounted when considering potential investment options.
