Tax tip of the Month – Top up that ISA
If you are looking at tax efficient places to put your money – A great place to start is an ISA.
You can put a stipulated amount of money into an ISA each year to earn tax free savings, the allowable amount resets each April.
For the 2014-2015 tax year you can put up to £15,240 into a cash ISA.
Why are ISAs good new for your savings? In most saving accounts you pay the government 20p of tax from every £1 of interest you earn on your savings. When interest rates are as low as they currently are you want to keep as much of that interest as possible. With money in an ISA you get to keep 100% of the interest your money attracts.