Providing for family is a lot harder than it might seem. As well as thinking about the present and short-term, it’s also important to have one eye on what the future may bring, which makes building up a financial nest-egg of some kind a smart idea. Saving some money every month is handy for later on in life, but where should it be stored?
It might be easy to think that a run-of-the-mill savings account will suffice, but it’s possible to get more for your money. However, as most savings accounts are based on the interest rate set by the Bank of England, which currently stands at just 0.5%, getting extra money from interest might be hard to find, but with few options available, one type of savings product stands out.
Efficiency plus value
ISAs (Individual Savings Accounts) are seen as a great option for anyone with a family to provide for. The reason is that, up to a point, any money made in interest from total savings under £5,760 a year is exempt from tax. Also, ISAs typically come with higher interest rates than the norm, although it’s imperative to open up one ISA per year to make them worthwhile in the long run.
Perhaps the only drawback that regular ISAs have is that money stored in them cannot be readily accessed. Fortunately, Cash ISAs, which have become far more visible in recent years, seem like a more viable option for anyone who needs to access their savings in emergencies. They’re also a little easier to understand, and are no less secure.
“YBS Cash ISAs are designed for money that you may wish to access in the short or medium term to suit different needs”, said a spokesperson from Yorkshire Building Society.
“Once you’ve invested up to your maximum allowance for the tax year, we have other savings options for your short and longer-term savings goals. With us you can transfer your old ISAs with just two simple steps and we’ll do all the paperwork for you.
“Switching could really make a huge difference to the amount of interest you’re earning and, using our Savings Rate Checker, we can tell you quickly and easily what rate your current ISA provider is giving you.
“That way, you can make sure that you’re getting a good deal and if not, you can switch to us. We’re a mutual building society you can trust owned by and run solely for the benefit of our customers, who are our members”, they concluded.
AUTHOR Derek Sall
Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially--one email, one article, one person at a time.