The Commonwealth Bank Business Sales Indicator was largely unchanged in trend terms throughout December, it has been revealed.

The Commonwealth Bank (CBA) Business Sales Indicator (BSI) has recorded its best reading for more than a year.

It is positive news for retailers in Australia as the BSI tracks the value of Aussie credit and debit transactions through the financial organisation’s point-of-sale terminals.

The result was mainly unchanged in trend terms but there was good news for firms.

Craig James, chief economist of the bank’s broking subsidiary CommSec and author of the BSI, pointed out this result was particularly positive because there was some activity in New South Wales and Queensland in December.

He said: “While growth in economy-wide spending remains elusive, the good news is that the majority of industry sectors are still expanding rather than contracting.”

What’s more, Mr James stated December 2009 saw the BSI decrease in terms of a trend basis, while executive general manager of local business banking at the CBA Matt Comyn noted Retail Stores has now experienced its fourth consecutive rise as it increased by 0.5 per cent in December.

He added: “We must also remain mindful of the impact of the recent flooding on small businesses operating in affected communities across Australia.”

And this natural disaster has led many financial organisations to pledge money to flood relief, as well as produce emergency packages for those affected.

Some of services provided by the banks have included extensions to credit card limits, as well as waiving charges on the withdrawal of term deposits.

Mr Comyn stated: “There will undoubtedly be negative short-term effects on business activity including continuing supply-chain disruptions and a tightening on cashflow.”

This comes after the CBA revealed in December there were positive signs for companies, despite continued negative spending growth in its last BSI.

It fell for the 12th month in a row in November, but Mr Comyn pointed out the declines recorded by the BSI had been getting lower.

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Many people are aware of the advantages of an ISA and that they are advised to get one. But once you’ve opened up an ISA account, what is the best way to use it.

The best ISA providers will explain all the terms and conditions associated with their ISA accounts.  If they don’t however, you should know that the government places limits on the amount of money that you can put into an ISA. Even if you take lots of money out, the amount of money you can put into the ISA account will remain unaffected. For this reason, you need to think a little harder about how you move your money around your savings accounts if one of them is an ISA.

The best ISA accounts, indeed ISA accounts generally, are designed for long term saving.  Especially now that savings rates are at an all time low, the amount of money you could save in an ISA versus a normal savings account is very small indeed if you’re a short term saver. Assuming a two percent rate of interest, £1000 saved over a year in a normal saving account will earn £18 in net interest. If you put the money into an ISA, you’d earn an extra £2 from the tax saving. Clearly, this is a fractional difference and, given the limitations imposed upon ISA accounts, you would be much better off with a normal savings account.

Interest however, is cumulative so if you saved £1000 a year over a longer period, the situation looks very different indeed.

Saving £1000 every year for 15 years will generate gross interest of £2639. In a normal savings account you would be liable to pay tax of 20%, which means you would be almost £530 worse off. Clearly, if you are in a position to save over the long term, you should opt for an ISA over a conventional savings account.

What you do with your money is a personal decision that can deeply affect your life, both positively and negatively. If you are in any doubt as to what you should do with your money, make sure you get some independent financial advice as soon as possible.

Throughout our lifetimes there will be big-ticket items that we need to save up for. This could be your dream wedding, planning for a baby, or your first car. There are several different kinds of financial options available that could help you save for these things. This can include ISAs, bond funds, equity funds and current accounts.

One of the best options for you might be an ISA (Individual Savings Account).

An ISA is a savings account with a special, government-approved tax wrapper. ISAs are popular and can be an effective way of savings if you are more risk averse but able to commit your money for longer than with a standard deposit. Like a normal savings account, your deposit grows with the addition of interest payments from your bank. The difference with an ISA is that you pay no income tax or capital gains tax on these returns. ISAs also tend to offer better interest rates than normal savings accounts. This can give your savings an extra ‘boost’.

There are two kinds of ISAs available, cash ISAs and investment ISAs, and it is important you choose the best ISA for you to make the most savings. With an investment ISA, your savings are put into longer-term investments. The limit of cash you can deposit is also higher – this means you have the potential to earn more in your individual savings account if you are able to commit to saving for longer. Cash ISAs have lower annual limit but you are often more able to withdraw cash if you need to.

Interest rates will vary from provider to provider, and different providers may also have their own restrictions.

A different option is investing. There are several different kinds of investments and as with all financial products, some will be right for you and others won’t. This is especially true as investments can be risky – and if you are saving for a specific purpose in the future you might find that you are less willing to lose your deposit. Individual savings accounts work in a different way to investing and therefore offer different returns.  It is important to know how comfortable you feel with a short-term loss as you have the opportunity to make long-term gains.

If you invest, you’ll have to be prepared for some risk and a possible fall in the value of your investment. It is generally the case that the higher the risk, the higher the potential returns and vice versa. For example, investing in cash is low risk but the returns are minimal compared to investing in UK shares.

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