It is official, isa season has started! What is an isa, you may want to know? An isa is just like an ordinary savings account, but you don’t get taxed on the interest of your savings. It is a way of avoiding a large part of the income tax which makes it very popular! The government created isa to encourage citizens to save more. All UK citizens are allowed a certain amount of savings from our isa’s, and now is the time to get your savings on.
During the isa season different banks, building societies and investments houses will try to intrigue UK citizens to put their money with them. This season lasts five to six weeks before the end of the tax year, on April 5 (as if we could forget), and is when you can get the most out of your isa account deals.
By getting an ISA account you are making the most of your money. Like all savings, the more you save now the more you will have later. It is important for the health of your account that you go ahead and start investing now.
How Do I Get Started?
Once you have chosen a location for you isa, you have done most of the work. The rest of the decision making process will be up to your preferences.
The next important step is to decide what kind of isa account you want. Do you want an account with easy access? You will need to choose an account that allows you to withdraw or add money whenever you want. You can start with just as a little money as a pound to get your account started.
If you want a more long-term plan there are isas where you must leave the money in the account for a period of one to five years. These types of accounts are more stable, and you know that there is a fixed interest rate for all of those years.
It is an important decision to make, so make sure to consider all your options. Hurry up, before you know it isa season will be over!