A financial expert has advised investors to stick with their individual savings accounts (ISA), despite the low rates currently available.
Some ISAs start out with interest rates as low as 0.25 per cent, although variable rates of up to 2.5 per cent are on the market.
Andrew Haggar, from Moneynet, accepts that savings rates may seem unattractive at the moment, but he insists that those who take a long term view will benefit.
He said: "It is worth remembering that if you take out an ISA this year, you then ring fence your money from the tax man next year as well.
"Because the interest rates are currently low, the taxation part of that is also low. Then when the rates pick up, so will the benefits of an Isa."
Greater cash allowances of up to £5,100 will soon be available to all customers, having already been open to those aged over 50 since October.
The Fair Investment Company recently reported that, although people were looking to diversify their investment, 51 per cent still had their greatest exposure to cash.
ISA benefits for those with long-term view, says expert
Financial Services > Savings > Savings and Investments News
ISA benefits for those with long-term view, says expert
Mon, 08 Feb 2010
Recommended links
Find savings providers offering the best ratesSavings enquiry form
Compare savings accounts
Isas guides and options
Savings accounts guide
Aldermore introduces new ISAs
Post Office unveils new savings bond and ISA
Isa allowance increases but savings rates drop
Building societies prepare for Isa savings boost
Over 50s urged to utilise Isa savings allowances
Santander launches Isa saving account
Nationwide increases Isa interest rates
Leeds Building Society launches high interest Isa
Cash Isas go electronic
Isa owners pay too much tax on savings, says the Nottingham
M&S Money urges savers to take advantage of Isas
Savers should utilise Isas, says Nationwide research
| savings news |
|---|
| ISA allowance saves consumers thousands - Fri, 12 Mar 2010 |
| Savings rates falling to fund mortgage cuts - Wed, 10 Mar 2010 |
| Savings accounts hit by latest base rate decision - Mon, 08 Mar 2010 |
| More News |
