It’s not a question that you often hear asked but there is no denying its positive value especially for those who are concerned about their future; so we ask, does saving excite you? Are you one of those people looking to prepare for the rainy days? If your answer to these questions is “yes”, then perhaps it is time for you to choose a cash ISA account.
For those who are wondering, a cash ISA is much like most savings accounts offered by banks. It offers a great way to stash away a fraction of your earnings and convert it into savings. It is not uncommon for many people today to head to the bank to open a savings account and in fact, the truly savvy maintain multiple savings accounts in many banks and for various purposes.
If indeed, you are excited with the concept of saving, then you would be pleased to know that a cash ISA takes the idea of savings to a whole new level. This is because compared to a traditional savings account, a cash ISA carries a lot of advantages. Consider the following short list of positive benefits that you can expect from cash ISA:
- Tax advantages. A normal savings account is taxed just like most profits. In many cases, it is levied a capital gains tax which eats into the profit itself. This is not the case with cash individual savings accounts; by law, cash ISAs are not taxed during the holding period or during withdrawal. This maximizes the profit that you can expect to draw out of each investment.
- Cash ISAs are convertible to stock ISAs should one choose to do so. This increases the flexibility of the investment and simplifies the process of investing without having to withdraw and personally purchase financial instruments like stocks and shares. With a cash ISA, you can follow through the prescribed conversion process and your host bank takes care of all the processing for you.
You do not need to be a deeply enamored with the idea of saving to appreciate the value of cash ISAs, although it bears mentioning that being excited with the idea of savings can give you more than ample motivation to take advantage of the benefits of financial instruments like the cash ISA. See how you can incorporate it into your investment goals so you can invest safely, and enjoy the tax benefits that come with cash ISAs.