Making the most of the new Super ISA
On 1 July, the new Super ISA arrived. Unlike the regular old ISAs, the Super ISA allows you to save up to £15,000 tax free, in either savings accounts or stocks and shares investments.
This is great news for anyone who tends to have an extra £15,000 lying around every year, but for the rest of us it was hard enough to save the old £11,880 ISA allowance.
Why not use the dawn of the Super ISA as an opportunity to reboot your savings plans? Follow our money saving advice to help give your savings a boost and get the most out of the new Super ISA.
Give up one luxury
A luxury can be any regular purchase which you could go without (but don’t want to). It may be a weekly magazine subscription; a morning cappuccino; weekly pedicures or daily taxi rides. Cut out one, just one, of these luxuries and make a point of putting that money aside for your savings. You’ll be surprised at how quickly it all adds up.
Get the best rates
There are dozens of Cash ISAs on the market, offering anything from 0.25% to 2.3%. However, the better ISA accounts tend to come with a number of caveats. You are allowed to transfer your ISA savings from one account to another, so it’s worth shopping around to find out which account is right for you. Even a 1% difference in rates can be worth up to £150 per year if you are saving £15,000.
Get on top of your accounts
This is a boring task, but it’s worth doing at least once a year. Go through your income and expenditures to figure out exactly how much extra cash you have at the end of each month. Too often, this disposable income just disappears on impulse purchases or bad planning. Once you know how much you have to work with, you will know how much you can afford to save.
Set up a direct debit
Get into the habit of including saving money on a regular basis. You can transfer up to £1250 into your ISA every month to reach the annual limit of £15,000.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk