5 ways to make the most out of a cash ISA (From York Press)

5 ways to make the most out of a cash ISA

4:04pm Wednesday 4th April 2012 in lloyds_advertorial_content_york

1. Use your savings limit You won’t pay tax on the interest you earn on your ISA savings, up to a limit set by HM Treasury each year.

Before the tax year ends, it’s a good idea to pay as much into your cash ISA as you can afford to make the most of your tax-free cash ISA allowance.

Any unused allowance doesn’t roll on to the next tax year, so if you don’t use it, you’ll lose it.

Find out more about LTSB cash ISA accounts. Your tax treatment depends on your individual circumstances and may change.

The new tax year starts on April 6th every year, so set yourself a reminder in March and take advantage of tax-free savings.

2. Choose the right account One of the most important things to remember when saving with an ISA is to choose the right account. There are plenty of accounts on the market, each with different benefits so you should choose the one that suits you. If you’re saving for the first time, think about an instant access cash ISA – you can open an account with as little as £1, and pay in as much as you like up to the cash ISA limit set by HM Treasury each year.

You’ll also be able to withdraw money from your instant access cash ISA at any time so they’re useful if you think you’ll need quick access to your money.

If you’re planning on saving for a long time, you could get a better interest rate with a Fixed Rate Cash ISA, with some terms up to 5 years.

3. Shop around for the best deal By moving your ISA to a new provider you could get a better interest rate on your savings. As a new customer, you’ll get the latest deals at Lloyds TSB so you could make your savings go further.

Make your money work harder with a LTSB ISA

4. Pay in regularly If you have a cash ISA, you can pay in regularly by standing order. It’s amazing how much you can save by putting aside just a little money each month.

Few people have the full ISA allowance amount handy to invest, but most people can save something each month.

Your money could earn more interest in a cash ISA than in a current account, so why not make it work harder for you?

Before you get started, check the interest rates on your current account to see how they compare to a cash ISA.

5. Don’t withdraw money unless you need to We all have little emergencies when we need to draw on our savings to pay for what we need.

But try not to withdraw money from your cash ISA too often. If you’ve paid in money up to your savings limit, you won’t be able to add more in the same tax year, even if you withdraw some.

Start saving for the things you want with cash ISA savings