Financial adviser: People need to make full use of ISAs

People are being urged to ensure they take full advantage of the tax-free savings available to them.

Consumers have been told to make full use of the tax benefits extended to them through individual savings accounts (ISAs).

Karl Pemberton, director of Active Financial Services, writes for The Northern Echo of the advantages of cash ISAs.

"Cash ISAs are deemed to be very low risk, safe investments that offer relatively easy access," he explains.

He adds that, each year, up to £3,600 of contributions may be made by consumers to their cash ISAs.

Beyond this, a further £3,600 may be invested into stocks and shares ISAs, taking the overall contribution to £7,200.

However, Britons may opt to place the full £7,200 allowance into stocks and shares ISAs if they so wish.

Savers can add anywhere up to this maximum amount to their ISA in a number of transactions over the course of the year, according to the terms and conditions of their product.

Whichever route consumers take with their contributions to ISAs, any remaining allowance left unused at the end of April 5th is lost as it cannot be carried over into the following tax year when it begins the following day.