An Individual Savings Account is basically a type of personal retail investment scheme available to UK residents. It was first introduced in 1999 and has been designed in order to provide a flexible and convenient way of saving for retirement and other long-term goals. This account is a very popular choice with many savers. The main aim of these accounts is to provide flexibility through the use of various account types and rates of interest.
The main benefit to having such an account is that there is a wide range of accounts to choose from. The advantage is that you can invest your money in the best interest rates possible and this allows for a better rate of return than with more traditional investments such as stocks and shares. Many people consider these accounts a better option than putting their money into bonds or other fixed interest saving investments. Find out more about ISAs and other financial products like Life assurance from Cavendish online, providers of Life assurance and other products.
There are also many tax benefits that encourage people to consider such an investment option. The first is that the tax relief offered by the government can help save you up to 40% on your tax bill when using an ISA. In addition, the ISA is not subject to income tax or capital gains tax.
These tax benefits are just one of the reasons why many people prefer to invest in an ISA rather than using the regular savings account or a certificate of deposit (CD) to fund their retirement and other long-term goals. You can also have your ISA tax free, unlike a regular savings account which has to be declared annually or else you can incur a penalty.