With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.
Whether you are putting money aside for your child’s school fees, a brand new motor, or a move on to or up the property ladder, finding the best way to save is likely to be on your ‘to do’ list. Whatever your savings goal, the use of a tax-free cash Individual Savings Account (ISA) can help you make the most of your savings in comparison to utilising a standard savings account.
Whilst high street banks and building societies no longer offer advice on savings, we are here to fill in the blanks so you can meet those coveted goals. In this article, we focus on the role of the cash ISA and reveal how products of this nature could be your route to tax-free savings.
Who benefits from cash ISA investment?
In short, you benefit from opening and investing in a cash ISA. The cash ISA is a simple way to save and you don’t pay tax on savings of £15,240 or less for the 2016/17 tax year. Account holders can also choose to split their savings, and the associated tax-free allowance, between a cash ISA and a stocks and shares ISA to customise their savings route further.
What happens at the end of the tax year?
Come the end of the tax year it is important to note that your cash ISA account will not close. When the tax year finishes your allowance renews and any deposits rolling over will remain tax-free as long as it stays in the ISA account.
I want to withdraw, how will this affect my allowance?
Just like opening a cash ISA account, withdrawing funds couldn’t be easier. Whilst the rules and charges for withdrawing money may differ from product to product, you should be able to withdraw money at any time. But remember, any withdrawal made will affect your tax-free allowance, which will be reduced by the same amount.
Want further financial advice on using a cash ISA as a tax-free savings route? Contact Slater Financial today on 01298 212444.
*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*