LOOKING AFTER YOUR MONEY…
Top tips to make the most of your cash ISA with the Marsden Building Society, writes Sarah de Waard. Photography: Kirsten Platt
Marsden Building Society has been looking after its members’ money since it first opened its doors in 1860. With friendly, local teams across the North West, they share their expertise on how to make the most of your cash ISA…
1. Use it, don’t lose it!
An ISA is a savings account where no tax is paid on interest earned. Individuals over the age of 16 can put up to £20,000 into an ISA per tax year (starting on April 6th for 2018/19).
In 2016, HMRC introduced the Personal Savings Allowance (PSA). This means you could earn up to £1,000 of interest per tax year on your non-ISA savings accounts before having to pay tax. Interest from cash ISAs doesn’t count towards your PSA, as it is already tax-free. Taking out a cash ISA future proofs your savings against tax so making the most of your tax free allowance will be important in the future when rates rise, especially if you’ve accrued larger amounts of savings.
2. Long, short or medium?
There’s a lot of choice when it comes to ISAs so have a think about what works best for you. Your savings will work harder the longer you can tie them up for but that may not always be the best option. Many, including the Marsden, have competitive easy access ISAs and fixed rate products or notice ISAs to choose from.
3. Know your saving style
If you’re not already in the habit of saving, using your ISA is a great first step! You can set up a direct debit to go straight in each month and you’ll soon see your ISA starting to grow year on year. Or, if you have a lump sum to save, you may prefer to invest your full ISA allowance in a single transaction!
Make the most of transferring your ISA in
If you’re already a seasoned saver when it comes to your ISA, make the most of your ability to transfer in. Under the ISA regulations, you can transfer your cash ISA within five business days. You may incur an interest penalty so it’s worth checking your product terms and conditions first!
This means you can take your existing ISAs from previous years and transfer it into a new ISA account, you can even move your ISAs from previous years to a new provider.
At the Marsden, we help your money work harder so pop in and have a conversation with our team or call us on 01200 427622. If you’re looking to open an account there are no appointments required, simply visit our website for information on what you need to bring with you!
The Marsden Building Society
30 Castle Street, Clitheroe BB7 2BX
No appointments necessary
Marsden also have branches in Nelson, Barrowford, Colne, Burnley, Lytham, Poulton and Garstang.
For more information, please visit the website.