How to get your ISA give you better returns
Your ISA savings can do a lot better.
07:24 08 September 2013
Investing on Cash ISAs can give you more returns on your savings. It works like a standard savings account with the advantage of being tax free.
The following tips can help you pick the right type of ISA with maximum earnings.
- You will earn more from ISA if you put in the maximum allowed savings in your cash ISA allowance at the beginning of the tax year and not just a month before the deadline.
- Investing your ISA in stocks and shares is simple and tax advantageous. You can invest as much as £10,680 a year. You can apply to open an account online and check your performance online as well. You can opt to save as little as £50 a month or a £500 lump sum.
- If you are opting to save on a monthly basis early at the start of the tax year, authorize an automatic withdrawal from your current account to be transferred to your cash ISA. Choose an ISA that allows a minimal starting deposit £1 to £10 with the highest interest rate.
- Shop around for cash ISA online. Most cash ISAs offered on the internet turn out to be cheaper and they can give higher interest rates because of low overhead cost for running the business.
- Take advantage of introductory rates. Generally, introductory rates offer seem to be a good deal just make sure that the standard rate turns out to be competitive as well. If not, you have to be ready to transfer your cash ISA.
- Take into account fixed rate ISA. If you have some money to spare, instead of leaving it idle it could be put to better use by getting fixed rate ISA. Fixed rate accounts give out higher interest rates than the more accessible cash ISAs which you can withdraw anytime.
- Make sure that your cash ISA is always offering the best rate. If you notice that the interest rate has been lowered, it is time to move it to better yielding account which is paying a higher APR.