Cash ISA

When considering an investment of any sort a client should make sure that as far as possible he or she is receiving tax free interest on cash accounts. This can be achieved by making use, every year of the cash ISA allowance

Everyone should hold the first £5,100 of Bank or Building Society money in a cash ISA. If you do not have capital of this amount but are able to make regular savings, you should save regularly nto a Cash ISA

Things to look out for

If you may need access to your money, It should be possible to obtain an account with easy access and variable interest.

Internet accounts usually pay better interest rates.

If you can tie money up the fixed term account should pay better interest rates

If you are a non taxpayer look carefully at the deal, as you pay no tax, it is only worth taking out an ISA if the interest rate is better than the gross rate being offered by a normal Bank or Building Society account.

Remember you do not have to leave your capital in an account which is paying a low rate of interest, you are allowed to transfer accounts between Banks or Building Societies and this does not affect your entitlement to make a cash ISA contribution in the same tax year

If for any reason, your attitude to risk or circumstances have changed, you are allowed to transfer your cash ISA to a stocks and shares ISA and again it does not affect your entitlement to make a cash or stocks and shares ISA contribution in the same tax year

Nicholls Stevens will be able to give you advice on your existing and new purchase of cash ISAS