Altameroy Blog

For anybody who is unsure about how to start off on the savings road, the
statement from the UK’s Chancellor of the Exchequer that the annual Individual Savings Account (ISA) allowance is to be raised from its current level of seven thousand two hundred pounds to ten thousand two hundred pounds is extremely welcome indeed and will probably persuade a substantial amount of prospective consumers to start an ISA as the initial move in commencing to invest for the future.

This very big increase in the maximum limit that savers are able to invest annually is a clear indication that the Government wants everyone to save using this type of investment.

For those not familiar with ISA’s (Individual Savings Accounts), a quick summary may be of interest. ISA’s are now over ten years old and even before the announcement from the Chancellor they had been regarded by many as a secure and reliable type of tax free saving.

A further benefit is that no income tax is payable when you invest in an ISA. Add to that the fact that no capital gains are payable on an ISA and the advantages of this form of saving become even more obvious.

Anybody who is a payer of tax and who is over the age of sixteen can open an isa savings account and they may do so with as low an investment as ten pounds. This illustrates a central point in the Governments thinking
behind the setting up of ISA’s - they are intended to encourage more people who have never saved before to start making provision for their future.

Another plus point for ISA’s is their flexibility. You can decide for yourself how you wish to invest. There are varied ways that are available when investing in an ISA ranging from cash ISA’s to stocks and shares ISA’s. You can simply choose the one that you feel to be right for you.

Most people see investing in a cash ISA as a very secure form of investment because the returns are likely to be fixed and should be reliable. On the other hand stocks and shares ISA’s are thought likely to yield more but the snag is that a far higher
level of risk attaches to this form of investment.

At the present time the maximum amount that you can invest into a combination of ISA investments is ten thousand and two hundred pounds and the maximum that can be invested into a cash ISA is five thousand one hundred pounds. For savers whether new to investing or not, ISA’s are a very attractive and versatile form of saving and should not be discounted when considering potential investment options.