With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.
Here at Slater Financial, we understand that your financial health is important to you, and planning ahead for short and long term success is essential for people from all walks of life. The ISA, or Individual Savings Account, has become one of the most popular ways to save in the UK and with the right investment advice from a qualified Derbyshire specialist, you can find the product that has the potential to make your savings go further.
There are two types of ISAs available to UK savers, and understanding the difference between each and their associated returns will ensure you take advantage of the latest changes in legislation and make your savings plan a reality.
The cash ISA
The cash ISA allows savers to unlock a tax-free allowance of £15,240 per year. Available to all UK residents aged 16 and over, there are a variety of cash ISA products accessible from a multitude of building societies and banks. Often, whilst there may be limits on how much you can pay into your ISA every tax year, the cash ISA provides a more profitable investment approach than a standard savings account.
The stocks and shares ISA
Offering a greater potential return than a cash ISA, the stocks and shares ISA may come with an increased level of risk but with the most up-to-date independent financial advice you can access a tax-efficient investment solution. Any funds invested into a stocks and shares ISA is entered into a selection of investment and unit trusts, and as the associated stocks and shares rise or fall in value so too do your savings. Again there is a limit to how much you can invest, and for the 2015/16 tax year the stocks and shares ISA allowance is £15,240.
For junior savers
Junior savers needn’t miss out either. Junior ISAs (JISAs) are available and family members and friends can save efficiently on a child or young person’s behalf. The allowance for junior ISAs is £4,080 for the 2015/16 tax year, and products are available to children under 18.
*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*