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Consumers need “rainy day emergency cash”

January 8, 2008 by admin  
Filed under News, News-Banking

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All consumers should aim to save up to six months worth of salary in an Isa as a “‘rainy day’ emergency cash”, according to financial experts.

However, Harsgreave Lansdown said that for those who have already used their Isa’s maximum deposit allowance of £3,000 during this tax year “there aren’t really that many options” open to them other than premium bonds or building societies.

Ben Yearsley, investment manager with the asset management provider, said: “A lot of people do hold stocks and shares in their Isa, they like the excitement of holding individual shares. When you get big winners you can make big tax free gains in the Isa.”

As of April 2008 a series of changes are expected to be made to Isa. These changes include an increase in the annual subscription limit for cash Isas by 20 per cent, from £3,000 to £3,600.

The limit for stocks and shares Isas will also go up by 3 per cent, from £7,000 to £7,200.

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