Cash saving and other saving alternatives

1. INTELLISAVING LIMITED (No: 12827813)20-22 Wenlock Road, London,United Kingdom, N1 7GU Cash saving and other saving alternatives support@intellisaving.com https://www.facebook.com/intellisaving https://twitter.com/IntelliSaving https://www.linkedin.com/company/intellisaving/

2. Cash saving and other saving alternatives “One penny may seem to you a very insignificant thing, but it is the small seed from which fortunes spring” – Orison SwettMarden

3. The financial market has so many different saving options for each individual requirement that it can be challenging to choose the right one for your saving need, which is why we have put together a summary of some of the saving options currently available. We hope you will find this guide helpful. • Cash ISA • Cash ISA are savings accounts that do not require you to pay tax on the interest you receive. The options available include fixed-rate and instant access. With a cash saving account, you will not need to deposit a large quantity of money with cash ISAs. • Cash ISA continues to have a £20,000 limit for the tax year of 2021/22; this account will also give you tax-free interest on your savings. You can open one cash ISA per year; however, you can transfer to another Cash ISA or a stocks and shares ISA with a different provider during the tax year. Some cash ISAs are flexible as they will allow you to withdraw and replace money from ISA, which will not decrease your monthly allowance as long as you have done this within the same tax year. And will not have a negative effect on your current ISA allowance

4. It is important to consider that not all cash Isas will allow you to have this type of flexibility with your account, so find out with your provider whether your Isa offers this flexibility. Lifetime Isa and Junior Isa do not have this benefit at present. There are a few disadvantages to Cash ISA, such as the fact that you will not be able to update your annual limit unless you have a Flexible ISA, as a Flexible ISA will allow you to withdraw money and replace the funds without this having a negative effect on your allowance. Lifetime Stocks and shares ISA Lifetime stocks and shares ISA could be ideal for 18–39-year-olds, including a 25% bonus from the government. The highest amount that can be invested each year is £4,000. The maximum quantity that you can receive from a bonus is £1,000 per year; you will also receive a bonus for any savings you make before you reach the age of 50. It is important to note that investments in the stock market should be viewed as long-term investments regardless of investment type or who manages the account. Many investment experts advise investing for at least five years. If you cannot make this commitment because of the risks involved, such as losing part of your investment, then a saving account may be more suitable as the risks are reduced.

5. The Lifetime Isa was launched to help younger people get on the property ladder; this type of account is ideal for helping you buy your first home or for saving for retirement. With stocks and shares LISA, you have the chance to invest in “stock market assists instead of a cash saving scheme” (Money supermarket). However, investing in stocks and shares are more of a risk than cash, as the worth of investment can increase and decrease. On the upside, your investment can perform more efficiently than a cash deposit. But with this kind of investment, there is no assurance. Can Lifetime ISAS be opened along side other accounts? Lifetime ISA and other types of ISA can be held by the same person, meaning that you will not have to choose between one ISA and the other. For instance, if you have a cash ISA and investment Isa you can also have a lifetime ISA. The current 2021-2022 allowance is £20,000 and has a limit of £4,000 that can be deposited into a Lifetime ISA. The disadvantage of Lifetime ISA is that the rules are quite complicated.

6. Investment ISAs Individual savings account (investment ISA) is tax-efficient and allows savers to buy, sell and hold investments. Typically, when you invest, you must pay tax on income or capital gains you get from investments. However, with ISA, with regulated and accredited providers, you will not be taxed on capital gains and income as long as you follow their regulations. ISAs are tax-free, so any gains you get from investments do not need to be included in your tax return. Therefore, tracking capital gains with ISA is a thing of the past; furthermore, if all savings and investments are in ISAs, you will not have to fill in a tax return form. In 2014 the government set out ISA guidelines for investments generally seen as liquid, which can take more time to sell and therefore are categorised as higher risk. Instant access savings accounts Instant access accounts are ideal for those who earn better interest than the current account, who have spare cash and want to control how often they save. You can also make withdrawals as often as you need and will not need to take risks with your money.

7. Your savings might not reach their buying value in the long term in cases where the interest rate is lower than the increase in the cost of living (inflation). IntelliSaving: The Intellisaving platform will also do wonders for your saving journey as the platform enables users to track interest-bearing and saving accounts on one platform, such as Cash ISA and Easy access and more and giving access to the best rates in the market so you can see if you are making the most of your money with the current banks/financial institutes you hold banks with. Intellisavingis always looking for new ways of being an efficient way of enhancing every user’s saving experience regardless of the requirement. Saving is crucial regardless of your reason for saving; saving is saving at the end of the day. Each saving option has advantages and disadvantages, as shown during this article, but it is about choosing the account that matches you’re saving needs the most and at the same time weighing the risks to see which you deem as the most advantageous for you.

8. At Intellisaving, we believe that it is essential to be equipped with as much information as possible to make the most informed decisions that help better your tomorrow rather than jeopardise it, because without thorough information, how can you truly be sure that the financial decision you make now is one that will benefit your future, to reach your goals and to be equipped for potential rainy days. Intellisaving has many more informative articles on the different aspects of saving; why not head over to https://www.intellisaving.com/ to find out more. Tags savings