Net sales for Individual Savings Accounts stocks and shares reached £956m in this years ISA season (between March and the end of the last tax year - 5 April), according to Investment Management Association (IMA).
According to the Savings Blog, these figures mark the highest level of this type of investment using the ISA wrapper during the same period for nine years.
Net sales throughout the last financial year hit £3.7bn, following the rise to the annual tax-free allowance.
The Individual tax-free savings limit for increased again on 6 April to £10,680, half of which can be saved in a cash ISA and the rest invested into stocks and shares ISAs, or alternatively up to the full amount in a stocks and shares Isa.
The limit will continue to rise at the start of each tax year in line with the RPI measure of inflation.
ISAs should be any savers' first port of call, as the interest earned on all other savings accounts is taxed at your income tax rate, so depending on how much you could be paying anything up to 50% of your returns to the tax man.
There are several types of ISA account, from instant access, to fixed rate bond style accounts that offer better returns in exchange for you leaving your funds for a fixed period.
Every tax year, your allowance is reset, so anything you failed to use up from the previous year will be lost. Something else that is worth remembering is that if you withdraw from your ISA, you won't be able to replace those funds – much like a gate that only opens one way.
No comments:
Post a Comment