Utilising Isa limit 'important'

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Utilising Isa limit 'important'

Tue 26th Jan 2010

Consumers who are looking to invest in an Isa should ensure they set aside as much as they can in order to get the best possible returns on their money, it has been advised.

Jason Butler, partner at Bloomsbury Financial Planning, said that as inflation picks up again, it is vital for savers to make the most of their tax free allowance to get the biggest returns on their money.

"They matter more in a low return environment than they do, paradoxically, in a high return, low inflation environment," Mr Butler stated.

However, he advised people who are tempted to change to a different Isa with a better rate of interest to look out for charges or an interest penalty for moving to a different product.

The comments came after the news from Moneynet.co.uk that the amount gained per month through a tax free Isa with an investment of £3,600 is just 73p more than it is on a taxed account.

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