Thursday 27 October 2016

Tax Efficient Saving Account - Cash ISA

In an unsure economic climate, financial planning is more necessary than ever and for anyone. With a family, saving in the long run has become a high priority. Giving yourselves and your family a strong financial base ensures they have the quality potential to start in life, whether they want to pay for driving lessons, begin on a course of higher education or choose another path.
For this ISA is the best choice as they give a good return on your money and is tax free. But there comes a need to understand the different aspects of ISA if you are planning to invest the most of your money in it. There is a limit to the amount you can deposit into your ISA in a single tax year. It will affect your choice which one to opt to.

In 2016/17 tax year you can invest up to £15,240 into the ISA products. You can entirely invest whether in cash ISA, stock and share ISA. You can also invest £5,000 in cash ISA, £5,000 in a stock & shares ISA, £5,240 in an innovative finance ISA.

Who is eligible?

  1. It must be UK residence for tax purposes
  2. Age 16 or over
ISA can only be held in a single name and you can only open one Cash ISA per year. You can withdraw the money from cash ISA and transfer whenever you want, but there is a special process to follow. Cash ISA might best suit you if you are merely searching for a low-risk savings choice with easy accessibility to your money.

For more information on Cash ISAs and other types of savings accounts, speak to a savings adviser who could help you make informed decisions to suit your financial needs. You may find it beneficial to talk to the experts at Barrington Howe Ltd. Contact Us!

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