Now is a great time for any person to make the most of their tax free savings allowance with some great rates being offered on cash ISA’s. At present savers looking at variable rate cash ISA’s are likely to receive a higher interest rate than they would for a standard variable rate product. The same applies for fixed rate cash ISA products, when the tax savings are considered the rate currently being given can offer the investor a higher rate of returns than most standard fixed rate saving products.

With the Bank of England currently slashing the base rate to 0.5% to encourage spending, rates on taxed variable saving accounts have suffered. The best taxable variable savings account on the market is currently offering a rate of around 2.45%. When compared to the rates for variable ISA savings products, taxed variable saving products look like a weak investment choice. At present the best cash ISA variable rate on the market is being by offered by Natwest and RBS at 3.51% giving savers much greater returns than standard variable products when considering the higher rate along with the tax free status of the savings. For savers who perhaps do not have the funds to invest a large lump sum, the regular saver ISA products offer a great opportunity to ensure money earned from savings is tax free. At present the best rates being offered for regular saver ISA’s is around 3% which is unfortunately lower than the best standard regular saver account that offers a rate of around 6%. Whichever ever ISA option is chosen, using a savings calculator can help determine the best investment opportunity.

By using a savings calculator the investor can get a greater understanding of where will be the best home for their cash isa savings, as well as any stock and shares isa’s they may have.


Article from articlesbase.com

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