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Spring forward for the taxman

It’s normally a rather bossy command sent out to recalcitrant teenagers off to the Summer Ball. The phrase is ‘Know your limits’.

But in this case, and on April 6 there are one or two limits, from Budgets past and present, which will be to your benefit; thus – know your limits.

From April 6 this year, the rules of the now well-known Individual Savings Account have been extended –which is good news.

The limit has gone from £15,240 in any one tax year – to £20,000. That’s £20,000 in cash, stocks and shares or what’s called, rather bizarrely, the Innovative Finance ISA – that means things like peer-to-peer lending -  but best approached with a shovelful of caution, as this particular type of ISA is not protected by the Financial Services Compensation Scheme.

However, it is unusually generous of the taxman to lob us all an extra tax-free pot of damn near five grand a year – so to misuse another old phrase – don’t go missing the mouth of a tax-free interest horse.
We live, for better or for worse, in a low-interest environment and may do for the foreseeable future. So for any spare cash you have, get it into an ISA before the financial year closes on April 5.

Being the Family Building Society we have a range of offerings to suit you and your family members, like our Flexible ISA.

We’re particularly proud of our Market Tracker Cash ISA. You can save between £500 and £100,000 and get easy access to your savings. This ISA has the advantage of - as it says in the name - tracking the market. Four times a year we look the 20 best performing ISAs in the market and take the average. This avoids the situation where you place your savings into a headline-grabbing account and the interest rates falls off a cliff while you are not watching. If you have fallen into this trap, fear not – you can transfer older ISA funds without losing your tax-free benefits. 

It was paying 0.85% and from 1 April pays 0.86% - up a tiny smidgeon because that’s what the market’s done. You can find out more here.

And because we like to keep things in the ‘Family’ as it were, if you have any form of account with us (and that includes a mortgage), you and your family members also have exclusive access to our Market Tracker Saver which currently pays 0.81% for balances of £500+. It operates on the same principal as the Market Tracker Cash ISA, where you can save between £500 and £100,000. It also takes the average of the 20 highest gross annual variable interest rates in the taxable immediate access market. Find out more here.

Ok it’s not a lot of an increase on either of the tracker accounts (actually as small as it could be), but it’s a pleasant change to see interest rates going up rather than down. As some witty copywriter once penned, ‘Every little helps…’
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Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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