Stock Explosion

For people about to embark on the savings route, the
statement from Great Britain’s 11 Downing Street that the yearly Individual Savings Account (ISA) allowance is to be upped from its present level of seven thousand two hundred pounds to ten thousand two hundred pounds is genuinely welcome indeed and will probably prompt lots of prospective investors to create an ISA as the first step in starting to save for the future.

This big increase in the maximum limit that investors are allowed to invest annually is a clear indication that the Government of the UK wants citizens to save using this type of investment.

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

No income tax is payable if you invest in an ISA. Add to that the fact that no capital gains are payable on an ISA and the perks of this means of saving become even more apparent.

Any taxpayer.A taxpayer who is over the age of sixteen can begin an isa savings account and they may do so with as little an investment as ten pounds. This shows a key point in the Governments thinking
behind the setting up of ISA’s – they are intended to encourage more citizens who have never saved before to start making provision for the future.

Another important point for ISA’s is their flexibility. You can select how you wish to invest. There are various ways that are available when saving in an ISA ranging from cash ISA’s to stocks and shares ISA’s. You can simply pick the one that you feel to be right for your needs.

A lot of people see investing in a cash ISA as a very secure sort of investment as the returns are likely to be fixed and should be reliable. On the other side of the coin stocks and shares ISA’s are considered likely to yield more but the downside is that a far higher
level of risk attaches to this type 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 may be invested into a cash ISA is five thousand one hundred pounds. For savers whether new to investing or not, ISA’s are an increasingly attractive and flexible form of saving and should not be discounted when looking at possible investments.

Comments Off