ISAs the 'best place to start' for savers

Individuals looking for the best savings rate should start by looking at individual savings accounts, commonly known as ISAs.

This is the recommendation from totallymoney.com, which recommends ISAs because they are tax free - the rate advertised is what a saver can expect to earn.

ISAs are especially appealing to mature savers. From this year, individuals aged 50 and over can deposit up to £5,100 into an ISA. Anyone below that age is able to deposit £3,600.

The website went on to acknowledge that it can be tricky for savers to beat the rate of inflation, with basic rate taxpayers needing a savings rate of 4.63 per cent to keep up with any inflation rises.

Rising inflation is good news for those in debt however, as borrowed money lessens in value as inflation increases.

This could, in the long term, make saving easier.

According to Halifax, almost half 44 per cent of households in the south-east have an ISA, which is slightly higher than the 43 per cent in the east of England.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-02-23 13:35:54 © Moneyextra.com