Save for a Residential Putting Green with Santander

European Golf Editor: As a sequel to our previous article on personal finance, we now consider how an ISA provides good saving opportunities. Santander have provided this information which details the various aspects of ISA savings and how you can benefit - Save for a new residential golf green with an ISA by Santander.

Choosing an ISA

There is good news for savers with the limit on ISAs now up to £10,200, with a £5,100 cash limit. This means that every adult now has a £10,200 Individual Savings Account (ISA) allowance which they can invest each tax year (from 6th April to 5th April) as opposed to the previous £7,200 limit. All income and all capital gains from ISAs are tax free, which means you will be significantly better off investing savings in an ISA, rather than a normal current account. To get an idea of the benefits, try visiting the Santander website, where you can find details on a wide range of bank accounts, including ISAs. And with interest rates at all-time lows, it’s a must for anyone in the UK looking to save money.

When choosing an ISA, the first thing to consider is the cash return rate. This determines how much you earn on your account. As long as your account terms specify that you are allowed withdrawals, you can transfer from one ISA to another at any time without penalty, so it’s worth keeping an eye on rates to make sure you’re getting the best deal.

You should also check how flexible the ISA is. There are several types of account, including easy access accounts, regular savings accounts and fixed rate accounts. The type of account will determine how much you can withdraw and when you can withdraw it.

Some ISAs do not allow you to withdraw your savings until a given period of time has elapsed (and if you do, you are penalized). They may offer higher rates of return, but if you need easy access to your savings, or aren’t sure that you want to tie them up for one or maybe two years, you should think twice - you will not benefit from a high rate if you need to access your funds before the prescribed term is over.

If you are a new to ISAs, you could be offered a bonus rate on certain accounts by banks looking to attract new customers. These are worth looking into, especially if the rate is being offered for a period of half a year or more, but savers should bear in mind that rates generally fall very steeply after this time, so you may need to start looking around for another account before too long.

When selecting an ISA manager, check that they have been approved by HM Revenue and customs and keep tabs on their performance to make sure you are getting the most out of your savings.

With this advice in mind, you will be well on the way to finding the ISA which suits you.