Savings

Savings

There are many good reasons for saving, from putting away money for emergencies to the bigger, more exciting things in life like a deposit on a home, or a special family holiday. After all, we all have dreams we want to fulfil and goals we want to reach, and having money saved can help them become a reality.

For most of us, having some cash that we can access quickly to pay for unexpected things like an unforeseen bill and some put away that steadily builds up for the future makes good financial sense.

Whether it’s locking away your money in exchange for a fixed interest rate, saving when you can and accessing your money when you need it, or making the most of tax-free interest, there are lots of ways to save.

One of the safest ways to accumulate cash is to put it into a deposit account, and banks and building society accounts are the first port of call for many when they start saving.

The right savings strategy for you will depend on your personal circumstances. We can advise you on the home for your short and longer-term savings. We can also explain the benefits of government-backed accounts like Individual Savings Accounts (ISAs) that help you save and offer the added incentive of tax relief.

How ISAs can help

There are hundreds of different accounts on offer from banks, building societies and investment companies. So how do you make your choice? For many people, taking out an ISA can be a good place to begin.

An ISA is a simple, tax-free way to save or invest. The advantage of these types of account is that you don’t pay tax on the interest you earn or on any increase in the value of your investments. There are now several different types of ISA available, designed by the government to encourage everyone to save for their future.

What types of ISA are there?

The basic types are:

  • Cash ISAs and stocks and shares ISAs for savers and investors
  • Junior ISAs for children
  • Help to Buy ISAs for those saving for a home
  • Lifetime ISAs for those saving to buy a home or who wish to save until age 60.

Getting the savings habit can make a real difference to your future wealth, so why not get in touch for some good advice?

Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.

Tax treatment varies according to individual circumstances and is subject to change.

The value of investments and the income from them may go down. You may not get back the original amount invested.