Find the right ISA to suit your needs

If you do not have much more saving time left, you will want to investigate ISAs right away.

13:56 30 January 2014

If you are like a lot of other people, you might have realised, as you got closer to your retirement years that you did not quite have enough money saved.

It can be stressful trying to figure out ways to boost your income with very little time left for risks and losses. Then there are also taxes to consider on certain types of money you earn, which can further reduce what you have for retirement. In cases such as these, you might want to look into an Independent Savings Account (ISA). 

 

Here are a few things you should know before you make a decision. 

 

• Unlike a traditional savings account, Independent Savings Accounts (ISAs) are capped at certain deposit amounts for the year. If possible you will want to maximise the amount that is allowed for the year. 

 

• Do not select the first ISA you find; there may be different options depending upon the company you select. Be sure to compare interest rates so you know you are getting one of the best rates, but you will also need to compare other aspects to know if it is the right company for you. 

 

• Each company may require a different amount of money for a minimum deposit to open an ISA.  If you do not have an amount for one of the companies, you can keep looking for a company that has an easier deposit goal. 

 

• There are different types of ISAs to fit your needs. If you need a shorter-term investment option you can select a Cash ISA, or if you have a long-term need you can choose the Stocks and Shares ISA.

 

• Remember to compare and research before choosing the ISA you want. It might be possible to find fixed rates, even though variable rate ISAs are likely to be more common, or if funds can be transferred.