Tax Free Savings For A Rainy Day

By Author: Corwin Smith
Total Articles: 12
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With interest rates as low as they are, savings accounts are not giving the returns they once did. So, at a time when people are advised to put away the extra cash saved from low rates on their mortgages, they are unfortunately not making as much money from these savings as they used to.
However, tax free savings are still worth taking advantage of. Even with rates lower than previously available, they still work out to your benefit when you take into account the cumulative interest gained with no tax being paid out on it. As there is a limit to how much you are allowed to put away every year, it is important to use this to your maximum benefit, then when the interest rates increase – which they will, in years to come, you will gain the benefit on the full amount you have saved.
There are many companies, both on and offline that can help you find the best ISA rates on offer today, and there tends to be no penalty for ISA-hopping – that is, taking advantage of the best ISA transfer rates. Most ISA provides will offer a hassle free way of doing this which should be as simple as switching utility companies, perhaps ...
... a form to fill in, but they will do the leg-work on the actual transfer.
The key is to look for the current high interest ISA and transfer to that one, you may find that it stays the best provider for more than a year, but don’t take this for granted, do some research before the start of the new financial year, speak to some banks, building societies and independent financial advisors, who will be able to let you know about rates that may not be available on the open market.
Children’s savings plans are another way to take advantage of tax free savings, they are also known as Junior ISAs and work in the same way as the adult ones, allowing a tax free amount to be saved per year. Judging by recent increases in University fees, it doesn’t seem like it is ever too early to start children’s savings plans.

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