Consumer Energy Report is now Energy Trends Insider -- Read More »

Best ISAs For The Novice Investor

If you’ve got any spare money to invest then it really is worth looking at the option of an ISA. As you probably already know, ISAs were introduced by the government to encourage saving and offer a unique opportunity to protect any interest you’ve earned from the tax man, with the UK’s economy going through a rough patch and personal debt becoming an increasingly prevalent issue accountants are urging that its more important than ever to take advantage of tax free savings.

As things stand at the moment there are two main types of ISA; a Mini and a Maxi. The Maxi option is probably best suited to investors in stock and shares as they’re generally provided by Investment companies who tend not to offer the most competitive cash savings rates, if you’re keen on the idea of investing rather than simply taking advantage of a tax free savings account then the best option is probably to get a Maxi ISA and put your full £7000 allocation into stocks and shares.

A Mini ISA on the other hand is perhaps a safer option for less experienced investors. You can have two mini ISAs, with a maximum of £3000 in cash and, if you like, the rest in a separate stocks and shares ISA. This means you search the market for the best Cash Mini ISA. With banks battling to attract the last minute ISA market there are plenty of competitive cash ISAs around at the moment; a quick glance at the top of the best buy tables shows that the best rates are somewhere between 6 and 6.5%.

In many cases however these market leading ISAs include a bonus, typically of around 1% which means that the rates will go down after the bonus period has ended. Do remember that you should be able to transfer your ISA if you feel it’s no longer competitive so keep an eye on best buy tables.

For a range of savings products, including ISA’s and traditional savings accounts, have a look at the Santander website, where you will find quotes and further information.