Individual Savings Accounts are a great way for savers and investors to build up the sums they need for their future financial goals, such as a house deposit or retirement pot.

With the tax-free annual allowance increasing over the years from £2,400 (PEP), up to £20,000 in the current tax year, it’s becoming increasingly easier for people to shelter large amounts of money from tax each year. It’s estimated that over 1,000 people in the UK are now ISA millionaires, having followed some dedicated savings habits, contributing to the maximum allowance each year in funds with attractive returns.

With the 2018/19 tax year fast coming to an end, if you haven’t maximised your ISA allowance for the year, you’re running out of time. If you follow these investing habits and maximise your ISA allowance each tax year, you could save hundreds of thousands, if not millions of pounds over years to come.

Transfer from another investment

If you have money invested in other products such as a General Investment Account or a cash savings account, you could transfer these to your Stocks & Shares ISA to maximise your ISA allowance for the tax year. By transferring, you will benefit from the tax-efficiencies of an ISA and typically better returns on Stocks & Shares than in cash.

If you already have an ISA, you can transfer into it online through your personal account.

For any support, contact us on 0191 500 9164 or at customercare@tpllp.com to speak to one of our Client Managers.

Make a start

It’s always a good time to start saving for your future and the longer your investment has to grow, the better for your future returns. This is especially true when saving in a tax-efficient Individual Savings Account. By maximising your ISA before the end of this tax year, you’ll receive the tax benefits of the current allowance, and your investment will benefit from any compounding interest over the coming year.

You can top up your investments easily online or via app using our impulseSave® feature on your account. If you would like any help or more information, get in touch and our Client Managers will be happy to help.

Little and often

Making regular contributions to your ISA is one of the healthiest investing habits you can create. Drip-feeding into the market regularly is the best way to make your money do more and your returns will benefit from a compounding effect.

Setting up monthly direct debits is the best way to stop yourself from trying to time the market. If you invest £1,666.66 each month, you could use up your £20,000 allowance each tax year.

Tick this task off your monthly to-do list and set up a direct debit online in just a few minutes. You can set up how much you want to add to your investment each month and we’ll take care of the rest.

Take the emotion out of investing

Remember that investing is for the long-term, so stay patient, ride out any short-term market volatility and allow your investments to grow.

Take the emotion out of investing and seek guidance rather than reacting if you’re worried – we’re here to help when you need it.

By making the most of your ISA allowance, you could invest up to £20,000 this year tax-free. Maximising your ISA each year and allowing your investment to grow over the long-term, could generate a substantial fund for your future.

Log in or get in touch today to find out more.

Your capital is at risk. Investments can fluctuate in value and you may not get back the amount you invest. Past performance is not a guide to future performance. Tax rules can change at any time.

< Back to Blog