Are you getting savings savvy this ISA year?
6 April 2017 • Products & Services
Today marks the start of ISA season when the new window opens to save your hard-earned cash in a tax-free account.
This is a great time to share some facts about the ISA (Individual Savings Account) and information on savings in general.
Did you know?
- ISAs turn 18 this year having launched on 6th April 1999
- Any savers who invested their maximum allowance into their Cash ISA every tax year since 1999 would have accumulated more than £100,000 – not including any interest!
- April 2016 saw people saving with Building Societies to the value of £3.2 billion, this is the highest value of savings in one month since March 2008
- Unsurprisingly the amount UK savers are putting into their Cash ISAs has grown year on year and at Dec 2016 stood at almost £270 billion
- From 6th April 2017 the ISA subscription limit for the 2017/2018 tax year will increase to £20,000. Up from £15,240 in the previous year.1
The Cambridge’s Product Manager Dan Barker said: “April is a great time to think about savings. Make the most of your tax-free allowance and look at the options available to you. If an ISA is the right account for you then don’t leave it too late in the year to open one or you’ll have less time to save the full entitlement.”
While an ISA is a tax-efficient way to save or invest there are other options available and figures released last month show that building societies provide better savings accounts rates than other providers.
The Building Societies Association (BSA) collated this new data using a similar methodology to the effective rates data compiled and published by the Bank of England. The data shows that savers with building societies received an average of 1.58% on fixed rate and notice accounts across 2016, compared to an average of 1.30% in the Bank of England statistics. For instant access accounts, savers with building societies received an average rate of 0.88% in 2016, compared to 0.65% in the Bank of England data.2
Alongside ISAs The Cambridge provides other products including Savings Bonds, Children’s Savers and Instant Access Savings accounts as well as savings accounts for businesses. These different savings accounts ensure there are options to suit different customers with various savings needs.
Customer Contact Centre Supervisor Gemma Ashman said: “People do want flexibility when it comes to how long their money is tied up for. If you’re saving for a wedding you’ll probably have a certain amount of time in which to do this so a Regular Saver might be most suitable. It’s lovely helping customers achieve their dreams and sharing the excitement when they come to withdraw their money.”
Of course there are other customers who aren’t saving for anything in particular but just want a trusted place to save their money.
Dan said: “We’ve worked really hard to offer products that will appeal to a different range of savers. We see existing customers switch between products but we’re also getting customers from other areas of the country attracted by our competitive rates and service. There’s great flexibility in how accounts can be operated whether this is in person, over the phone, online or by post.”
1Stats sourced from the BSA savings statistics
2details on the methodology used by the BSA can be found here