ISA just called to say ‘I love you’ – but is it worth your affection?

ISA just called to say ‘I love you’ – but is it worth your affection?

With Valentine’s Day upon us, we’ve found you a match that’s a great earner, quick to open up, boasts flexibility and isn’t afraid of long-term commitment…

Individual Savings Accounts (ISAs) have been around for over 25 years and provide a way for savers to earn interest on their money tax-free.

Louise Halliwell, group savings director at Kent Reliance, says: “Although ISAs are best known for their tax perks, they’re also simple to open either online or in a branch.

“As the countdown to the new tax year begins, it’s important to remember that your ISA allowance can’t be carried over – it is a case of ‘use it or lose it.’

“So, if you’re in a position to take advantage of your allowance, make sure you do so ahead of 5 April.”

Here are three reasons to love ISAs:

1. They’re tax efficient

ISAs are best known for their tax efficiency – you can save up to £20,000 each year without paying any tax on the interest you earn.

Therefore, if you’re fortunate enough to earn interest in other accounts exceeding your Personal Savings Allowance, an ISA could be a great way to protect your hard-earned money.

2. They’re ideal for both long and short-term savings

Cash ISAs can be a good savings option for those looking to build up an emergency fund, because you’re guaranteed to get back everything you put in, plus a bit of interest.

You can also use a cash ISA for short-term goals such as saving for a holiday or a wedding. Some ISAs – such as Lifetime ISAs – are designed specifically for saving to buy your first home or saving towards retirement. These accounts give customers a bonus payment of an additional 25% on top of what’s paid in.

3. They offer savers the flexibility to pay into multiple ISAs

Since April 2024, it’s been possible to pay into multiple ISAs in a tax year without losing your annual ISA allowance.

This move has given savers the freedom to shop around as well as the opportunity to take advantage of more competitive deals.

Like what you’re seeing? We don’t blame you... To find out if an ISA really is worthy of your affection (as well as your savings), head to the Kent Reliance ISA Hub or speak to a member of our team.

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