4 savings ideas like financial independence dream
This is the perfect time for reflection and re-evaluation of our financial priorities.
10:15 17 April 2013
With the passing of Margaret Thatcher, many are remembering her belief in the capability of a person to be self-sufficient and independent of the government’s finances, whether they agree with it or not.
Some of the best ways to achieve that are to be responsible for your finances and begin a savings account.
There are quite a few different savings options, so you’ll want to review them all in order to figure out which one is right for you, or if you perhaps prefer to opt for multiple savings account to maximize your funds. Here are a few of the different types of savings accounts available to customers:
- Cash Individual Savings Accounts (ISAs)—While you may initially be put off by the annual limit for deposits, the good news is that these accounts typically earn a higher interest rate than other corresponding accounts and also allow contributions to be made free of taxes
- Junior ISA’s—these allow you to help out a minor and also have an annual cap on the amount which can be deposited. Similar to the regular cash ISA’s, this one also has tax-free deposits.
- Stocks and Shares ISAs—this particular type is available in a regular adult ISA, but also as a junior ISA. These are a little riskier, but give you the option to manage the stocks and your portfolio to try and maximize your earnings, and minimize your losses.
- Regular savings account—these tend to have lower rates of return, but the benefit here is that they do not have annual caps on the amounts which can be deposited. Another advantage, depending on your point of view, is that the regular savings accounts are made after taxes, which eliminates the need to worry about taxes once you remove the funds.