Investors that are currently wary of equities have been urged to ensure they maximise their contributions towards their cash ISA instead. With the end of the tax year looming large, TISA (Tax Incentivised Savings Association) said investors must act now or risk losing the tax free benefits open to them in the 2008/09 tax year. Even though equities may not currently be everyone's cup of tea, TISA pointed out money in a cash ISA can still be used to purchase a stocks and shares ISA at a later date, without leaving the tax free wrapper. "ISAs are a fantastic savings vehicle offering tax free returns and in the case of cash ISAs it is easy to access money if there is an emergency," said TISA director general Tony Vine-Lott. "As we approach the end of the tax year, investors should look out for the good deals on offer in terms of discounted management fees for stocks and shares ISAs. "For those able to lock money away for a longer period there are also bonus rates on offer for cash ISAs, although interest rate penalties are likely to apply if money is withdrawn before the end of the term." Investors have also been warned that many providers have deadlines for the receipt of applications at the end of March and with 5 April falling on a Sunday, they should act well before the deadline.
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