ISA Plans

The Isa-age looks as if it is here to stay. In December 2006 Gordon Brown finally said that the Individual Savings Account regime is now permanent – in the past he had said the tax breaks were only guaranteed to stay in place until 2010.



It means that if you want to save or invest tax-free you need to understand how Isas work and how to find the best of them. That’s what this independently researched and written website is designed to do. Isas are worth considering whether you have a few hundred pounds you want to put in a deposit account or a few thousand pounds you want to invest in shares. If you have had Peps and Tessas in the past you also need to make sure you couldn’t be doing better in an Isa. So read on for all the best tips.

Isa savers 'vote with their feet'

A record number of Isa savers are intending to switch provider this year, a new report claims.

Research carried out on behalf of Intelligent Finance found that seven per cent of those who have taken out an Isa in the last few years are intending to switch, up from just two per cent who decided to switch in 2004.

In addition, a further seven per cent who have taken out an Isa in the last few years say that they have already switched from their original provider, up from three per cent in 2004.

People are also becoming increasingly aware of the possibilities surrounding switching Isa provider, with four in five people knowing that they can switch, a five per cent increase on the year before.

Managing director at Intelligent Finance Mark Parker said: "An Isa provider is not necessarily for life, and the message that you can move your money is getting through to savers.

"Better still, increasing numbers are voting with their feet and moving their money elsewhere to get a better deal."

British savers urged to shop online

British savers have been advised to stop "throwing money away" by making an effort to find a better savings account on the internet.

Rachel Thrussell, head of savings at finance search engine moneyfacts.co.uk, said that traditional bank branch-based saving did not always fit in with today's busy lifestyle, especially with more banks reducing opening times and closing branches.

Internet banking's round-the-clock service could provide the perfect solution, she pointed out, with many internet accounts also paying better rates on savings.

The site found that best buy internet accounts pay up to 5.71 per cent gross from just £1. However the comparable branch-based accounts only offered 5.50 per cent, including a one per cent bonus.

Ms Thrussell said that keeping savings in a poor-paying account was "almost like throwing money away" and that with a little effort, savings could soon grow.

She commented: "Loyalty does not always pay, but DIY online will - so shop around the whole market for your new account, but just be aware that to get the best rates your new account will probably have to be internet-based."

However, she warned that those who saved online and wanted to access funds would often have to wait a few days for the transfer to reach their chosen account.

Banks and building societies including Nationwide recently reported a surge in people saving money into individual savings accounts (Isas) as they rushed to use up their tax-free allowance before the deadline of April 5th.

Insurances Limited comments “Savings are achieved when buying online and it is relatively easy to buy intangible products such as Individual Savings Accounts or bank accounts with the click of a mouse!”

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