Times are hard in these times of recession and economic gloom. Many Cash ISAs move at a flexible rate following the base rate that is set by the Bank of England. Yet, new spectacular reductions in base rate have seen interest rates drop to a historic low. In this low rate environment, it signifies that it could be time for savers to consider a Fixed Rate Cash ISA, which secures a rate for a determined period of time.
A Cash ISA is a tax-exempt savings account. You put your money into a Cash ISA much like a normal savings account but the interest will not be subject to capital gains tax (CGT) or personal income tax liability, Yet, it is essential to see that your tax free cash allowance is limited to £3,600 each tax year.
Other products allow you to put your cash in an ISA in the form of a one-off lump amount, multiple lump amounts or smaller regular payments. Although the total you can save each year is limited to £3600, any amount you lock away keeps its tax free status, permitting you to grow your tax free balance each year. All The Same, if you decide not to use your allowance in one tax year, you cannot roll it over to the next – so basically use it or lose it! So ensure that you tuck away any sum of money for the 08/09 tax year before the new tax year starts in April.
A fixed rate deal can provide security during uncertain economic times. By acting quickly you can set the rate on your savings to get the optimum deal possible during the current economic downswing. There is an excellent opportunity here for those members of the public who are keen to save. you can find more information about cash isa by this by following the link
Is a Cash ISA right for you?
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