Cash ISAs: The efficient savings option for families?

Saving for the future is something worth doing. It can pay for things like a home for your kids, a retirement villa, what’s left of your mortgage or for something more fun like a two-week holiday. Whatever your goals in life are, setting some money aside for the future is a great idea, but the options for savers hoping to get the most from their money are limited.

Each type of savings account comes equipped with an interest rate usually pegged to the base rate from the Bank of England, which is currently just 0.5%. As the percentage of interest is paid into your account annually, the higher it is, the better for your money. Sadly, with the base rate so low, finding a savings account offering even close to 2% without being taxable is difficult.

Best of a bad bunch?

Ordinary savings accounts aren’t offering much by way of value for money, which is where ISAs, particularly Cash ISAs come in handy. What sets them apart is that they typically offer higher interest rates than the norm and there’s also a threshold where a certain amount of money you deposit is free from the threat of being taxed.

Cash ISAs are seen as best for people with families to provide for because they offer near-instant access to your savings in emergency situations, something that cannot be said of regular ISAs. The tax-free threshold is £5,760 per year, but it’s imperative to open one ISA per year if that’s how you want to save your money.

piggy bank

Access and efficiency

Choosing something that’s secure yet flexible and great value is a must if wanting more from your hard-earned cash. This is what helps to make ISAs more attractive than other types of savings account on the market.

“YBS Cash ISAs are designed for money that you may wish to access in the short or medium term to suit different needs”, said a spokesperson from Yorkshire Building Society.

“Once you’ve invested up to your maximum allowance for the tax year, we have other savings options for your short and longer-term savings goals. With us you can transfer your old ISAs with just two simple steps and we’ll do all the paperwork for you.

“Switching could really make a huge difference to the amount of interest you’re earning and, using our Savings Rate Checker, we can tell you quickly and easily what rate your current ISA provider is giving you.

“That way, you can make sure that you’re getting a good deal and if not, you can switch to us. We’re a mutual building society you can trust owned by and run solely for the benefit of our customers, who are our members”, they concluded.

About Jen Perkins

Likes: saving money, being debt free (aside from our house), zombies, travel, getting money, blogging and dogs. Dislikes: debt, being broke, bunnies, wasting money, not having enough money to travel the world and paying interest. Facebook  ♥  Twitter  ♥  Google+  ♥  RSS

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