Hikes in ISA limits result from budget

It was announced at the recent budget by Alistair Darling, the Chancellor, that ISA limits in the UK were being hikes, although savers will not see the benefits straight away. Read more

Tags: isa limit, cash isas, individual savings account, society, investment, added incentive, ISA, interest rates

Consumers need to be encouraged to use Isas say financial experts

More needs to be done to encourage savers to put their money into individual savings accounts (Isas) by showing them the benefits of the products, one financial expert has claimed.

Findings from research from Nationwide revealed that one in ten savers topped up their Isa by more than £3,000 while only 8 per cent of Isa holders increased their limit by over £3,000.

Up to half of those questioned in a recent survey said they would like to save more money in Isas but do not have the funds to do so.

Matthew Carter, director for savings at Nationwide, said that with just over a week to go before the new Isa limits come into force, more needs to be done to encourage people to take advantage of their Isa allowance.

“With one in ten ISA holders opting to save in a regular savings account instead of their ISA, it’s essential that consumers are educated about the benefits of tax-efficient savings and how most Isas allow instant withdrawals,” he added.

The deadline for submitting an application for an Isa is April 5th.

Tags: matthew carter, individual savings account, Banking, application, allowance, Rob Fisher, research

Consumers need to be ‘wary’ of introductory Isa offers

Consumers have been warned by a financial expert to tread carefully when considering introductory offers on individual savings accounts (Isas).

Bestinvest said that introductory offers emerge when an Isa product first launches, which means no one can know the track record of a fund manager or how well it will perform.

Adrian Lowcock, senior investment adviser at Bestinvest, said: “You have to be a bit wary of them, and know what you are getting into. We tend to recommend fund managers that have a proven track record.”

He added that that one way to get “good value” with a deal is to find an advisor who will offer a discount and charge a low rate of initial commission.

Figures released in November 2007 by HM Revenue and Customs showed that the amount of money saved in Isas has now reached £208 billion.

According to the BBC, the total value of Isas has risen sevenfold from £29 billion since April 1st 2000.

Tags: Banking, sevenfold, investment, bbc, bestinvest, november, individual savings account

Consumers need “rainy day emergency cash”

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.

Tags: individual savings account, tax, consumers, series, tax free gains, rainy day emergency, management provider, day

Start saving early, warns Saga

Young people are being encouraged to start banking their pensions early or risk a tough time when they hit retirement.

Over-50s advisor Saga says that youngsters should be putting money aside as soon as possible by using tax-efficient savings tools and watch what they spend.

Spokesperson Steve Ashton said the sooner people begin saving their money for retirement, the less pressure they will have on them to put cash away in later in life.

He added that it would leave people less likely to get into financial difficulties, such as having to re-mortgage their home.

“Everybody ought to every year be trying to put as much money as possible into the basic tax-efficient savings vehicles, such as your annual ISA allowance,” he said.

“[It's] all very straightforward stuff, but if you are putting a few thousand pounds every year for a number of years into an ISA, then that over ten, twenty years can really start to ramp up and make a significant difference to your retirement income.”

Tags: saga, youngsters, Business Finance, cash, sooner people, time, individual savings account, financial difficulties

Internet Bank Accounts – The Benefits and Drawbacks

It’s a Wonderful Life

Traditionally, the banking industry has been regarded as extremely conservative and accountants as rather boring. But these days the world of banking is far from either boring or conservative. In the past few years it’s seen the last barricades against progress crumble as it has succumbed to the hype of marketing. With all its associated talk of brand values, customer service has arrived in banking. Read more

Tags: online bank accounts, internet banking, business, room remember, online banking