News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011
• May 2011
• April 2011
• March 2011

Newsletter

Brits 'need to save in an Isa'

By Sarah Engle, Mon 8 Mar 2010 - Published in Banking

Brits need to ensure they are saving into an Isa to avoid handing money to the taxman unnecessarily, according to an expert.

David Kuo, director of the financial website Fool.co.uk, said that people should open up an account or contribute to an existing one before the end of the current tax year.

"If you don't use your Isa, you are effectively giving money to the taxman when you needn't do. The amount you put in is not relevant," he explained.

Mr Kuo also stressed the importance of finding an Isa which will offer an interest rate of more than 3.5 per cent, in order to ensure that long-term savings overcome the eroding effect of inflation.

Last month, research from Barclays showed that 42 per cent of people are unaware that the amount which can be saved tax free in an Isa will rise from £7,200 to £10,200 from April 6th.

In addition, 70 per cent of savers do not know the maximum sum of money which can be put into a cash Isa before tax is applicable.