Anyone who takes their personal finance seriously knows it is impossible to overstate that a little can go a long way.
Setting aside a little here, earning a bit more there, things add up exponentially over time. These methods of managing your money are in fact essential not only to grow, but even to stay on an even keel if you had to. After all, we live in a highly dynamic world, and even during the best of times, inflation will decrease the value of your money. Even saving for retirement is not possible without investment that will guarantee a growth in their value.
Whether you are just beginning to consider doing more with your money than simply keeping it in a checking account, or have already begun investing in a variety of financial instruments, it’s always a good idea to have a good savings account.
One great type of savings account to have is an Individual Savings Account, or ISA. An ISA not only makes your money grow passively with an interest rate, but also to invest up to £20,000 free of tax, which is referred to as your account allowance.
In fact, isa investments are one of the best ways to utilise your funds for investment purposes if you are a UK resident.
Why Open an ISA
As you may know, the earnings you make with a traditional savings account are considered as taxable income. The same applies to any profits you make on investment gains.
With an ISA, you can deposit up to £20,000 to use for savings and investments, without it being subject to tax, regardless of how you split this amount and how you use it. A considerable savings opportunity by any measuring stick.
You can open such an account from age 16 and over, but for younger potential customers, parents can open an account in their name as well. It cannot be overstated how important it is to start engaging in prudent financial planning early on.
How to Choose an ISA
There are many banks offering ISAs these days so you want to keep an eye on both the quality of service provided by your bank of choice, as well as their rates, fees, and current offerings. With FinecoBank for example, there are zero fees associated, as well as a high customer satisfaction rate, 24/7 customer service, and many other tools and features associated with the account itself.
A problem with any of the aforementioned details can lead to endless frustration, dissatisfaction, and a negative experience which will prevent you from growing and flourishing in regards to your personal finance.
You also want to see what the bank offers in terms of investment opportunities, and how it functions as a trading and investing platform. Stocks, shares, funds, and other financial instruments are widely offered, but not in the same manner or the same extent.
Be sure to check if the particulars that you are interested in are provided by the bank you are considering, and what their terms are.
When you opt for opening an ISA, you will need little time but a few essential things in hand: a valid ID, such as a passport or driver’s licence; a tax identification number, or TIN; your smartphone (with a working number, needless to say), and a UK address.
The process is quick and easy, but if you feel apprehensive in any way, and feel like you want and need to know more, be sure to check if the bank offers a live demo.
A live demo can be booked for a time which is convenient for you, during which you will receive a thorough tour of the account, its features, and platform, as well as have any and all questions answered by a live representative.
It is a great way to get quick insight, doesn’t require any commitments, and hey, if you have some time to kill, why not give it a go.