Choosing the best lifetime ISA is crucial to achieving financial prosperity. The individual saving accounts, in its exclusive features, plays the role of foundation for orienting the people at large in UK to orient with regular savings and investment practices. It is in the worthiness of the scheme that small savings as well as the investment market in the UK, gets higher participation from the general mass and hence, silently walks towards development. You get a portfolio of different schemes of ISAs to choose from. The purpose of this article would be to discuss on the Cash Individual savings account, the basic option from the portfolio.
About the Cash Individual savings account
To explain the concept in simple terms, the cash ISAs can be described as a savings account that comes with the special scheme of tax exemption on the interest accumulated in the said account. Besides the benefit of tax exemption, the account holder gets entitled to allowances, the amount for which, for the tax year 2015-20116, had been set at 15,240 UK pounds.
Is there any ceiling for deposits to the ISAs?
An account holder is allowed to make deposits to the account, till it reaches the ceiling of the allowance for the specific tax year. The tax year stretches from the 6th of April, every year to April, 5th for the next year.
What are the key benefits that the cash ISAs offer?
The key benefits that the Cash ISAs account holder enjoys can be documented as follows:
- The account holder is offered with a wide portfolio of account options, that they can choose as per their individual savings plan.
- Instant liquidity that implies that in instances of cash exigencies, the account holder can withdraw the money from the account, as smoothly as he does with the usual savings account.
- The ISAs simplifies the task of making regular savings.
- If the account holder has a lump sum fund to save, they are offered with a fixed rate of interest.
- Options to choose between online or branch-based accounts.
- In cases of some ISAs, the balance of the allowance, if any at the end of the tax year, gets carried over to the opening balance of the new tax year.
The interest of the account holder is secured under the financial service compensation scheme
In instances of choosing any savings or investment plans, the key concern that revolves in the mind of the investor is, whether if his/her savings/investments will lie secured. Better to say about the Cash ISAs scheme is that accumulation up to 75000 Pounds will be protected through the financial service compensation scheme. Hence, the fund, up to the said extent is protected against threats of volatility.
From the points discussed above, it gets established that the cash ISAs has been the most effective yet simple-to-adapt scheme to orient with regular savings habit, which is the basic step to achieve financial prosperity, over the passage of time. A small yet smart step today, will surely pave the way for a secured and happy future.