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For anyone considering starting out on the savings road, the
statement from Britain’s 11 Downing Street that the annual 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 very welcome indeed and will probably tempt a large number of prospective investors to start an ISA as the initial step in commencing to invest for the future.

This massive hike in the maximum limit that savers are permitted to invest annually is a strong sign that the Government of the UK wants everyone to save more using this means of investment.

For those not familiar with ISA’s (Individual Savings Accounts), a brief summary may be useful. ISA’s are now over ten years old and even before the news from the Chancellor they had been regarded by many as a stable and reliable form of tax free saving. For anybody researching investment possibilities the ISA is sure to be an even more attractive proposition. Since being introduced in 1999, the advantages that are on offer with Individual Savings Accounts have been extremely tempting.

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 benefits of this means of saving become even more apparent. You will learn that ISA’s are available from a wide variety of sources, some of which are online while others can be found on the high street.

Another plus point for ISA’s is their flexibility. You can decide for yourself how you want 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 choose the one that you feel to be right for your needs.

There are many who see investing in a cash ISA as a very secure form of investment as 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 drawback is that a far higher
level of risk attaches to this sort of investment.

The maximum amount that you may invest into a mix 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.

Finally,you may wish to investigate other investment alternatives such as the child trust fund. For those interested in insurance matters you should look into life cover. Tax free savings are other options to consider.