Thursday, 4 June 2015

Individual Savings Accounts (ISAs) forms an integral part of investment strategy of UK citizens

Study Report On Individual Saving Accounts in UK

An Individual Saving Accounts (ISAs), available to residents in the UK who are aged 18 or over, is not just a normal saving accounts but are tax-exempted. The legislation governing ISAs was brought into effect in April 1999 and has superseded forerunners of the ISA such as Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs).

Though the ISAs holders are offered lusterless and very low interest rate, they have umpteen advantages over other normal saving rates and tax-exemptions available in the financial market.

The ISAs account holders are optimistic taking into consideration the various regulations that have been eased with effect from July 2014 resulting in improved flexibility and attractive transfer options. From 1st July 2014, the annual limit on ISA investments has risen to £15,000 and scheme was renamed as the New ISA (NISA). Under NISA, cash ISAs and stocks and shares ISAs have effectively been merged, with the overall limit increased to £15,240 which can be invested in either Cash, Stocks and Shares, or a mixture of both based on customer preference.

A major restraint faced by financial institutions is the low saving rates these ISAs have to offer and their constant comparison with personal savings allowance scheme. But there are reasons for the account holders to cheer. The emerging trends look promising with better terms and conditions the cash ISAs are expected to offer as the market would bounce back in the coming years.

There are many reports in the market that tracks the key trends and market opportunities of the ISAs in the UK. Recently, Research Beam added a report titled “Individual Savings Accounts in the UK - Key Trends and Opportunities to 2018”. The study offers an insight into the key drivers, current and future market trends, key innovations and market outlook through 2018

You may enquire about this report at:
http://www.researchbeam.com/individual-savings-accounts-in-the-uk-key-trends-and-opportunities-to-2018-market/enquire-about-report

Over the years, Cash ISAs have outperformed other attractive normal savings schemes as the latter locks away the money of individuals with no access for certain period. The account holders get a fixed rate and also have an access to their savings, though premature closing can levy penalties. Moreover the ISAs holders are quite immune to loss as interest rates rise which makes the gains accrued under personal savings allowance less attractive.

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