The following is a guest post.
It’s important to have savings in place. Whether saving for a new car, a deposit for the house, or even planning for retirement this isn’t going to materialize by leaving all your earnings in your current account. A savings account is essential. Whether looking for ISAs, an easy access solution or an option for investment through a leading SIPP provider, there is the ideal savings vehicle for you.
Here we take a look at some of your options.
Easy access savings account
If you’re just kicking off your savings future an easy access savings account is a great place to start. There are no restrictions in terms of when you can deposit and withdraw savings, making it an ideal option for short term savings. With this flexibility however, you will lose out on the best interest rates.
By opening a cash investment savings account you instantly enjoy ISA tax benefits. This is a scheme put in place by the UK Government to encourage saving, so if you have some funds it’s certainly worthwhile taking advantage of. With a Cash ISA you can deposit a total of £5,640 this tax year, with any interest you earn being tax free (as long as the savings are kept within your ISA).
For basic rate tax payers, paying 20% in income tax, for every pound you earn in interest in any normal savings account the tax man gets his hands on 20p. With a cash ISA, you keep the entire pound.
For the financially savvy, there are various investment options to really boost your savings pot. Whether you want to build up a savings pot for a few years down the line, or your thinking of your retirement there are great investment opportunities.
An investment ISA
Not only do ISAs offer tax benefits in terms of interest, there is also the opportunity to invest tax free. An investment – or stocks and shares ISA – enables you to invest £11,280 in a variety of different investment options including those registered with the London Stock Exchange, as well as corporate and government bonds amongst others.
This is the ideal savings vehicle if you have a little financial knowledge and have the ability to lock savings out for a period of time. It’s perfect to out a significant nest egg in place for the future.
Self-Invested Personal Pension (SIPP)
A SIPP offers the opportunity to take control of your retirement savings and invest them in exactly what you choose. SIPPs from leading providers offer a wide range of flexible investment opportunities. There are also tax benefits for this form of pension. Whenever you put money into this kind of pension, the administrator will usually reclaim 20% basic tax rate from the Government. What this basically means is that if you wanted to add £1,000 you would only need to add £800, with the remaining £200 contributed by HMRC. If you have a little investment knowledge, or the advice of an Independent Financial Advisor, a SIPP really offers the chance to control your retirement future.
Whatever your wants and needs for your savings future; there’s the ideal option for you.