Banking & Saving - Brits 'need to make use of ISAs'

There is no better time for Britons to make advantage of individual savings accounts (ISAs), a financial expert claims.

People should ensure that they are getting the most of their individual savings accounts (ISA) in the face of the continuing economic downturn, it has been suggested.

Simon Cole, chartered financial planner for Old Mill Financial Services, reminds consumers that although the rate of return attached to such a savings account have historically been more competitive than they are at present, due to the tax-free savings they offer, putting money into an ISA is still "good financial sense", Fairinvestment.co.uk reports.

"ISAs offer tax breaks for both higher and basic rate tax payers because you pay no capital gains tax and no additional income tax making it one of the most tax-efficient ways to save and invest," Mr Cole adds.

He points out that those looking to generate a high rate of return over the long term may want to consider a stocks and shares ISA - especially with the stock market currently in a low position.

Meanwhile, Karl Pemberton, director of Active Financial Services, recently wrote in The Northern Echo that cash ISAs are widely regarded as being low-risk investment, offering easy access to savers.