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With the huge range of Individual Savings Accounts available in today’s financial market, it is more important than ever to ensure that you make the right decisions when you are planning for your future. And the ISA savings account is a fantastic tax efficient investment tool which enables you to get the most from your money. But with so many accounts now available, it is essential that you gain an in-depth knowledge of what is on offer when you are choosing your new account and compare ISAs to make sure that you get the benefits to suit your needs. Since its introduction by the UK Government in 1999, the ISA has become an incredibly popular form of savings accounts with over 17.5 million people in the UK now enjoying the benefits that this type of account can provide. The main advantage of the ISA is the shield it provides protecting your capital gains and interest from the taxman. Whether you invest in a Cash ISA or choose the more volatile but potentially more rewarding stocks and shares option, or a combination of the two, current ISA legislation enables you to invest up to £11,280 every year in investment products that are fully protected from the taxman, allowing all growth and income from your savings to be enjoyed completely tax free. But not all ISA accounts are the same and finding the one that fits your needs is essential in making your money work for you. With such massive volatility in the stock market both here in the UK and abroad, the value of ISA investments has greatly fluctuated and while some have seen losses over past years, many ISAs have been able to ride the recession storm and continue to provide positive returns to their customers far beyond that of a standard savings account or even some more specialised investment options. When we compare ISAs obviously the key decision is going to rest on the rate of return that each provider is offering, however your choice should look further than simply the number on the chart. Also consider the past performance of the product, though this is no guarantee of future success, a provider that has been able to ride the volatility of the financial market historically is going to be in a stronger position to provide growth in the future than a company that has struggled in recent years. Also compare the level of fees applicable to your chosen account as well as the level of flexibility that your ISA offers. Would you be able to transfer to another product should you find one with a better rate of return or can you transfer in other funds should you want to pool your resources? By addressing all these issues before you open your individual savings account, you can make sure that the decisions you make today give you the security you need to benefit you and your family both now and in the future.
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