Open An ISA Every Tax Year
If you have been putting off taking advantage of your yearly ISA allowance, you really should make the effort to open one in the upcoming year. You’re only allowed one ISA account per year and once the year is over, you’ve lost that ISA forever. And, passed up your chance to earn tax free interest payments.
Even if you don’t expect to be able to deposit the full amount that is allowed each year, you should still open the account. Some providers require very little to open an ISA and you can even have it set up so that a certain amount is deposited each month. The main thing is that once you open the account and keep it active, it’s tax free indefinitely.
One of the main reasons that it’s a good idea to take advantage of your ISA allowance every year is because it will always be there. While you may not be able to deposit the entire yearly allotment now, you may be able to deposit the entire amount during another tax year.
Anyone that lives in the UK and is 16 or older can have one ISA each year. With a standard savings account you’ll have to report any earnings and pay taxes on those earnings. But, you will never need to pay taxes on any of the interest that you earn from an ISA. It is important if opening a cash ISA that you research the best cash ISA rates.