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Get a nicer ISA to start the tax year

Get a nicer ISA to start the tax year

Category: Savings

Updated: 11/04/2011
First Published: 08/04/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The new tax year may only just have begun, but there's no excuse not to find a home for your ISA allowance as soon as possible.

ISAs have become the UK's savings weapon of choice since they were launched in 1999, with only the reach of the current account more widespread amongst UK consumers when it comes to personal finance.

They are considered one of the most efficient ways of saving as returns are not liable for tax.

And providers have been involved in something of an ISA war as they battled to attract the last of the 2010/11 tax year ISA funds.

It means that as the dust settles, there are a number of cracking tax-free accounts for you to sink your teeth and your savings into.

This year, the allowance for cash ISA accounts has risen to £5,340.

If you're unsure of where to place your 2011/12 ISA allowance, Moneyfacts.co.uk is the place to begin your search.

Amongst the best cash ISAs on the market are:

Our best buy tables are an invaluable way of quickly hunting down the latest and greatest cash ISA deals.

A saver investing £5,340 in an ISA paying 3.00% would earn £192 in interest. In a standard savings account a basic rate tax payer would only receive £130, while a higher rate tax payer would only receive £97 in interest.

"Nobody likes handing money over to the taxman, so why pay more than you have too?" said Michele Slade, spokesperson for Moneyfacts.co.uk

"At the start of a new tax year providers increase rates to tempt savers into investing their new tax free allowance early.

"Savers investing now are being offered a host of competitive rates, some as high as 5.00%, but they need to act fast as the best deals won't last for long."

Find the best savings rates for you - Compare savings accounts


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 Any products featured may be withdrawn by their provider or changed at any time.

 
 
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