30% of Brits have ISA's - Deadline Now Looms

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The deadline to apply for an Individual Savings Account (ISA) - a personal tax shelter for savers - is fast approaching. The UK treasury reports that over 30% of UK adults currently benefit from an ISA.

So with the deadline now just three weeks away (April 5th) there is just enough time for savers to secure their tax break. For new savers unaware of ISA's, Dianomi in association with the London Stock Exchange have put together a step-by-step guide to help you select the best ISA:-

1.     Choose the type of ISA you need. A 'Cash ISA' allows you to save up to £3,000, earning interest tax free without any risk to your money. A 'Stock and Shares ISA' allows you to save up to £7,000 for a longer period (say over 5 years), but your savings are linked to the value of the stock market. This means the value of your savings can go down as well as up.

2.    Identify the ISA that gives you the best possible return with minimal risk. There are numerous price comparison sites out there, but we suggest applying for ISA brochure's direct and reading the fine print. You can do that by clicking here.

3.    Read each ISA Brochure in detail and take time to read the individual analysis on each product. You will normally find details on their historic performance and also the awards that have been won by the ISA provider.

4.    If you choose a 'Stocks and Shares ISA', select an investment theme that feels right to you. For example, some of Fidelity's Stocks and Shares ISAs, also known as Investment Trust ISAs, focus on a range of world markets including Asia, Japan, Europe and the UK. The benefit being that the broad spread of business investment helps smooth out market ups and downs.

5.    Before making any investment decision speak with each company offering the ISA and ensure you know exactly what the risks are. Ensure that the company you speak with is regulated by the Financial Services Authority (FSA) and don't be afraid to question any fine print in their brochures.

With the deadline now just three weeks away (April 5th) there is still just enough time to ensure your tax break for the forthcoming year. With a significant amount of Brits - 1 in 3 UK adults - now holding an ISA, many still forecast that numbers will continue to rise this year as more savers learn about their advantages.

For more information on ISA's, click here.

This service is provided by Dianomi. Contact: sales@dianomi.com. Dianomi does not specifically recommend the products or brochures specified above, is not providing financial investment advice and shall not be liable for any actions taken in reliance on this contents.

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Julian Barkes
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