Financial experts: Cash Isas are ideal
20th August 2008
Everyone in the country should consider taking out a cash Isa, a report has suggested.
In an article in the Times, the paper's financial experts suggested that it was sensible for everyone in the UK to have some savings in a cash account as this would give them security if they got into unforeseen financial trouble in the future.
In particular, the paper stressed that "cash Isas are ideal" as the interest gained from them is tax-free.
"Also the rates paid on Isas are usually higher than average. Many are instant access accounts so you can withdraw money at any time," the paper pointed out.
However, the report noted that interest rates offered in different cash Isas varied wildly, making it worthwhile to shop around.
"The highest rates are usually available on postal or telephone accounts," the newspaper explained. "If you want a stocks and shares Isa, you can save on initial charges by investing through a discount broker.
"Seek advice if you are not sure what type of stocks and shares Isa will meet your needs."
HM Revenue & Customs explained that individuals in the UK can use Isas to save up to £7,200 each year and not pay UK tax on the income received.
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