The clock is ticking to use up your 2013/14 tax-free allowance for the financial year, and if you've yet to make your deposit then now's the time to do so. You're allowed to put up to £5,760 in a cash ISA (or up to £11,520 if you invest in a stocks and shares ISA), so if you've got a decent amount there's still time to make the most of your allowance – wait too much longer and you'll have to start from scratch, but invest now and you can add to it next year to maximise your returns!
At Moneyfacts we talk a lot about these savings products and we happen to think they're pretty beneficial, so we've put together a few reasons you should consider investing in this kind of account…
A lot of ISAs have very limited opening restrictions which is great for those new to the savings arena, and the fact that some can even be opened with as little as £1 means just about anyone can get into the savings habit with ease.
They're often highly flexible too, with easy-access ISAs allowing you (as the name suggests) the opportunity to access your funds or make further deposits whenever you wish. You're in total control and have the freedom to save as much or as little as your budget allows (as long as you stick within the ISA limits), whilst offering the chance to withdraw your cash should one of life's emergencies hit.
Because you're in control you're taking on all of the risks too, but really, there aren't many to speak of. Cash ISAs are very low-risk savings products as, unlike investments, there's no way you can get back less than you put in (although you might need to contend with the effects of inflation, and remember that if you choose stocks and shares ISAs the risks are higher and you may not get back your initial investment), and you're covered by the Financial Services Compensation Scheme for up to £85,000 should the bank or building society go bust.
ISAs tend to offer much better rates than regular savings accounts too, particularly if you go for a fixed product – you might have to lock your money away for longer, but the pay-off could be worth it. And of course, let's not forget that ISAs are entirely tax-free! Unlike with other savings accounts you won't be giving the taxman any of your hard-earned savings, as long as you stick within your allowance. What could be better than that?
So, don't miss out – maximise your savings with a tax-free ISA and end the financial year with a bang!
Check out our pick of the top 6 inflation-beating cash ISAs
Find the best account for your needs using our handy comparison tool
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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