Best ISA Rates that You Can Get
ISA is one of the beneficial forms of retail investment for the residents of UK. The post -tax income that is invested in this scheme provides a tax-free growth as well as withdrawal after the age of 60 years. This kind of investment encourages the habit of saving in individuals.
One can start investing in this scheme after the age of 16 and till the age of 60 years. An individual enjoys the growth on the amount deposited as well as an equal contribution from the government along with a bonus @25%. The amount thus saved together with the bonus can be used in between for the purpose of purchasing a first house.
Withdrawals cannot be made for other purposes during the stipulated period. If need to be done, it can be done after paying certain amount as charges that may be @5% or so and after foregoing the bonus and the government contribution. But if the withdrawal is made after 60 years of age then then it can be made for any purpose and for tax-free.
Deciding or fixing the best ISA rates would not be feasible at this time when the rate of inflation is playing a major role. The present inflation rate in UK is somewhere between 4 & 6% depending upon the type of inflation index-CPI or RPI. Even with a best ISA rates the impact of inflation cannot be reduced.
One can start saving their income in the ISAs so that when the situation improves in future they may gain simultaneously. In the present scenario, the ISA rate needs to be at least 4% (in case of inflation using CPI index) or 6% (in case of inflation using RPI index). But sadly the rates offered nowadays are lower than that around 2% or less than that.
Several banks and societies offer different rates on ISAs. It is very important that one needs to be cautious and careful while choosing the institutions for ISAs. It is not only the rates but safety and secured of your hard earned money is also the priority. Few points that are to be remembered while choosing an ISA and its rates are:
- Never go for any unheard institutions. Stick to the reputed and well known organisations.
- Choosing the societies will be more relevant over others because the safety of your investment is also important. The societies are more under strict supervision. They are restricted from doing certain activities. This will make your investment safer.
- Choosing the National savings will make your investment more secure and keep you relaxed too.
- Select a quality press at the weekends that are packed with the info on the safer investment options and with competitive rates.
- Look out whether the organisation is regulated by Financial Services Authority and the number allotted by FSA.
Even if you are not able to get the best ISA rates in the current scenario, you may continue to invest in ISAs for enjoying the allowance and further transfer to different ISAs as the situation improves in future.