Wary of equities – invest in a Cash ISA
TISA – Tax Incentivised Savings Association – is urging investors who are wary of equities to ensure they maximise contributions towards their Cash ISA as this can be used to purchase a Stocks & Shares ISA at a later date, without leaving the tax free wrapper.
But with the end of the tax year looming on April 5, TISA says investors need to act now if they have not yet used their 2008/09 ISA allowance, or risk losing the tax free benefits. Once the tax year ends ISA contribution allowances for this year will be lost forever and cannot be reclaimed.
TISA Director General Tony Vine-Lott says:
“If the events of the past 18 months have told us anything it’s that it is essential to have a savings nest egg. ISAs are a fantastic savings vehicle offering tax free returns and in the case of Cash ISAs it is easy to access money if there is an emergency.
“As we approach the end of the tax year investors should look out for the good deals on offer in terms of discounted management fees for Stocks & Shares ISAs. For those able to lock money away for a longer period there are also bonus rates on offer for Cash ISAs, although interest rate penalties are likely to apply if money is withdrawn before the end of the term.”
Many providers have deadlines for the receipt of applications at the end of March and with April 5 falling on a Sunday investors should act well before the deadline.
For further information, please contact:
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108Email: tony.vine-lott@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786. Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier trade association in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst at the same time encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products to the sector and its consumer interest. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles including:
• Individual Savings Accounts (ISAs)
• Child Trust Funds (CTFs)
• Savings Gateway
• Personal Pensions
• Investment Bonds
• Employer based pension schemes
• Wraps and platforms
• Other consumer-centric savings schemes and initiatives.
HM Government uses TISA’s market knowledge and ability to represent the views of both the savings and investments industry and consumers to help it to its policy in this area. Recent TISA successes include improvements to the ISA, the regime in which ISAs operate and simplification of the CTF.