Monday, 31 March 2014

Making Sense of the New ISAs

As we are getting slightly older we are finally getting in a better financial position than when we first met seven years ago.  Hubbie has been promoted at work and we now have both boys in school full time so we do not have the constant worry of rising childcare costs. 

At the rate we are going we might actually get to the stage where we can start thinking about putting aside some savings, instead of just adding any spare coppers to the boys piggy banks.  Up until this point it has not been a consideration, but I am hopeful soon it will be a reality!  So its time to look at our options and do some research ready.

It can be tricky finding the right information to make an informed choice and work out what’s best for you as a family to get the most of whatever savings you have.  From the 1st of July 2014 the chancellor announced the New ISAs that is marketed as a much simpler product.  I am all for simplicity so it appears a positive step in the right direction.

Scottish Friendly have made a helpful guide to the new ISAs to explain the differences or if you prefer you can watch the video below to make sense of it all.  The main changes seem to be an increase in the subscription limit (to £15,000), this is fabulous news as it means you pay less tax on your savings and there will also be more flexibility with transfers.  It has never been easier to change between providers or adjust how much you invest.

All existing ISA's will change automatically to the new format from the 1st of July date, so its good to know you do not need to do anything to benefit from the improvements to your investments.

The new ISAs do sound like a worthwhile place to stash any savings, so I will try extra hard to cut back on the little luxuries that build up over the week.  The boys are always pestering for one thing or another, I have to learn to be firmer and not indulge them with treats, then I might actually get to enjoy the new ISA for myself.

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