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Wednesday, June 20, 2012

Cash ISAs

  Earning money and disciplining yourself to then save the money you've earned grows frustrating when you find that you are then penalized by having to pay taxes a second time on that same money just because you've been responsible enough to put that money away into a savings account. Cashisas.com will show you how to save your hard earned money without having to pay taxes on it twice! : 



While everyone is used to seeing the taxman taking a significant chunk of their earnings from interest on savings accounts, the good news for savers is that there’s often no tax to pay when using an ISA. ISA stands for individual savings account, and there’s two main types – equity ISAs which are linked to stocks and shares, and cash ISAs which are much more similar to savings accounts.
While everyone who is a resident in the UK and over sixteen years of age is able to start an ISA, there are limits on how much you can put in tax free. Currently these stand at £5640 on cash ISAs and another £5640 on equity ISAs on top of that, making a total of £11,280. You can go over your limit on the equity ISA, but if you do this will reduce the amount you can put into a cash ISA accordingly, so if you go over the £5640 by £1000 on the equity ISA it will reduce your cash ISA allowance to £4640.
Different cash ISAs have different rules regarding access to your money, but it’s common that you’ll be able to access it whenever you need it. This isn’t universal however and some products do require notice if you wish to withdraw money from the ISA. Anything taken out of the ISA can’t then be re-added under the rules of the maximum amount you can put in per year, so only withdraw if you really need to... read more at cashisas.com




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