As interest for savers
dwindles even further, now is the time to ensure your savings and investments
are in the right place.
Looking at the latest
league tables, the top savers account is currently paying around 2% gross
interest. So if you’re a top rate tax payer this means you’re getting around
1.2% net, significantly below current inflation of around 2.7%.
A couple of current
accounts have been hitting the headlines with rates of up to 3% AER on certain balances.
The snag is that they have to be run like a current account with a minimum
monthly deposit, a certain amount of direct debits and often a monthly fee.
Whilst ISA’s are a
great way of saving without having to pay tax on the interest, many cash ISA’s
have also been hit with low rates. So don’t forget to check the rates regularly
especially if there was a bonus or initial rate offered.
With a Stocks &
Shares ISA, you pay no further tax on the income and no capital gains on any
profits. So if you are investing for the longer-term, you can use your ISA
allowance to ring-fence your profits.
So make sure you
regularly review your savings and investments to ensure you’re getting the best
deal for you and your attitude to risk.
If you would like to have a chat about your attitude to
investment risk and return or would like to take advantage of your full ISA
allowance, please contact us and we would be happy to help.
