Savers urged to invest money in an Isa

An individual savings account (Isa) is the best place to save for the future, it has been claimed.

Hargreaves Lansdown has warned that when the maximum deposit allowance has been reached – £3,000 for a mini Isa and £7,000 for a maxi Isa, there are not many options for cash investment.

Apart from the traditional building society accounts or premium bonds route, people who are not interested in stocks and shares may find it hard to find a good value savings product, said the asset management service.

Ben Yearsley, investment manager for the firm, commented: “Everybody should have about six months of salary saved up as ‘rainy day’ emergency cash. A good place to put that is in your cash Isa, if that’s sufficient.”

However, as of April this year, cash Isas can be transferred into stocks and shares Isas, which Mr Yearsley claimed could possibly lead to big tax-free gains.

© Adfero Ltd

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