In a world that has seen a rise in financial turbulence in recent times, it is logical that many are looking at their individual finances and considering how they can better manage them in order to increase their financial security.

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Tax Efficiency

ISAs, or Individual Savings Accounts, are a very effective method of saving, as they are extremely tax efficient. You do not have to pay income tax or capital gains tax on returns, and it is possible for you to withdraw sums at any point on a tax-free basis. For this reason, limits are placed upon the amount you are able to save.

ISA Allowances

It is worth noting that not all ISAs have identical allowances. For example, Help to Buy ISAs only enable you to save to a limit of £200 per month in addition to a deposit in the sum of £1,200 as an initial payment. As referred to in https://www.gov.uk/lifetime-isa, lifetime ISAs allow a yearly sum of £4,368.00. Additionally, there is a benefit of a top-up provided by the government of 25% of the amount you contribute. For financial advisers wanting to advise clients in this area, appropriate financial adviser software may be a worthy consideration.

Junior ISA

This ISA allowance is rising, albeit slightly, this year with an increase from £4,260 to £4,368. Relatives can therefore contribute a bit more towards the future of a child. With this type of savings account, the child will not be able to access the funds until they are 18 years old. The popularity of junior ISAs are growing. In 2017/2018, there were approximately 907,000 of these accounts. This is good news for our young generations.

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Stocks and Shares ISAs

These are also becoming more popular. Although adult ISAs declined from 11.1 million to 10.8 million during 2017/2018, stocks and shares ISAs saw an increase of almost 250,000 during the most recent tax year. Brexit may have an influence on these types of ISAs, however. Relevant financial adviser software can be useful here. For example, Intelliflo financial adviser software can be a good tool for those wishing to advise on this.

The rules relating to the various types of ISA change on a regular basis, and it is therefore important to keep abreast of all the latest information.