With April looming, it’s that time of the year again when financial institutions begin to roll out their ISA (independent savings account) offerings. ISA season is now in full swing ahead of the new tax year and all the usual names are looking to attract potential investors who are eager to use their full ISA allowance for the year.
The ISA limit of 10,200 that was previously only available to those over 50 years-old has this year been extended to anyone wanting to invest. It has been upped from the previous limit of 7,200 and is expected to attract even more interest in individual savings accounts.
Nobody’s annual ISA allowance is transferable so if you don’t use it by the end of the given tax year, it’s gone, making now the ideal time to start looking into the new competitive deals coming to the marketplace.
There have already been some great deals showing up on cash ISAs. They can pay up to 3.5 percent and are guaranteeing 3 per cent higher than the interest rate. There are also some great offers on ISA transfers which offer as high as 2.75 per cent interest. However, it is often advisable to bide your time and see if more attractive offers can crop up.
There are also stocks & shares ISAs (also know as equity ISAs) available and these have become increasingly popular with investors. These Isa’s can offer a larger return but also carry a higher amount of risk in comparison to cash Isa’s.
If the stock market plummeted like it did back in 2008, a large chunk of any money invested in equity ISAs could be lost. The risk is also increase as the limit on stocks & shares ISAs is 10,200 as opposed to 5,100 with their cash counterpart.
Due to the continued unpredictability of markets, the increased popularity of ISAs is only set to continue. Over recent years, the economy has been on a downturn and extremely erratic making ISAs a much safer and more appealing option to investors as opposed to other alternatives.
With banks and building societies eager to attract new investors, there’s guaranteed to be some great ISAs and possibly even better to come! Now is the perfect time to start investigating in order to take full advantage of your annual independent savings account allowance.
To find out more about taking out an ISA and ISA transfers, take a look at the offers from Leeds Building Society
Tags: building society, cash ISA, easy access savings, equity ISA, individual savings acount, investing, ISA, ISA transfer, online ISA, savings, tax free savings