INVESTING NOW

With many families feeling the financial pinch more than ever, its essential to know how to make the most of your savings. For many people, the best choice is an ISA as they give a good return on your money and are tax free. But to make the most of your money you really need to understand the different ISA products available.
There is cap on how much of your savings you are allowed to invest in an ISA in a single tax year, so this may affect your choice of which one to opt for. At present, you can pay up to £3,600 a year into a cash ISA. If you wish to invest a little more than that you may see a greater return from a stocks and shares ISA, which currently allows you to invest £7,200 per annum.
Take the time to compare the different ISA products, don't just automatically accept the one offered by your regular bank. Cash ISAs operated online tend to give the best rates, but this is by no means set in stone. Branch-based ISAs can also offer good deals.
Make sure you read the small print carefully. Some providers advertise a brilliant short term rate to lure in new savers. But often when you read the terms and conditions you realise that once this bonus period ends the normal rate it reverts to is pretty poor. This is alright if you are prepared to move your ISA to a new provider at this time, but if you don't have the time or motivation to do this you may be better off with a provider which offers a less impressive rate to newcomers but over time their rates are going to give you the biggest interest on your savings. Going for a fixed-rate term account usually offer higher rates, if you are prepared to commit to one provider for a few years.
Periodically check your ISA to see if it is still providing the best rates. If your ISA becomes uncompetitive you should look at switching to a provider who pays higher rates. Switching is usually straightforward as it is the providers who do most of the work after they have received your instructions. But when the switch can take place may depend on the terms you agreed to with your original provider and could be subject to charges.