ISA investment – Reap the benefits
by admin on 30/11/09 at 5:09 pm
All of us want to make the best investments that will not only keep our principal amount secure but also add to it by way of interest such that it develops into a healthy corpus on maturity. ISAs or Individual Savings Accounts is one such avenue for maximising returns and should be an integral part of any portfolio. This was introduced in 1999 by the UK government to boost and encourage the savings habit among people and replaced the PEPS and TESSA that were prevalent at that point in time.
It has become highly popular ever since and that has got to do with the tremendous benefits it offers. To start with, there in no income tax liability when you invest into any of the ISA schemes and that is very useful if you pay high income tax. Even for those not in the high tax bracket, investing in ISAs still makes sense since these investment details need not be divulged.
The fact that such investments do not attract any capital gains is another sweetener offered by the government. These benefits have led people to compare ISA rates offered by the many companies and they are now savvy enough to study and settle for the one which offers the best ISA rates and interest pay outs.
