Figuring out what to do with your money (other than spending it) may seem like a very hard adulting task. With so many suggestions on how you should handle your money, it’s difficult to understand what your best options are.
Whether you just want an account to put your savings to one side, or if you want a little something extra out of your money. Well look no further because here at The Growing Up Guide we’ll be offering you our best advice on all things money management.
What is an ISA?
First of all, an ISA is an individual savings account that is a tax-free way to save or invest your money. Nearly all banks offer these as well as other companies.
There are a multitude of ISAs that you can put money into, it all depends on what you want to gain from it.
Here are just a few ISAs that are currently on offer in a range of banks and building societies:
The Cash ISA is the most popular of all, being a simple way to store your money away from your current account whilst still having access to it. Yet, they’re not ideal for long-term saving.
The Help to Buy ISA is most known around young adults. As of late 2015, first time house buyers have had the opportunity to save money in a Help to Buy ISA.
If you open up one of these ISAs you are able to save £1,200 for your first month of opening the account, and then £200 per month following.
The Government will also top up your savings by 25%. Plus, if you and your partner have never purchased a property before then you are both entitled to open an account. However, you can only open a Help to Buy account up until November 2019.
The new Lifetime ISA (otherwise known as LISA) is a great new way to save your money. For this ISA you have two options, to either save money for first-time buyers, or to save for your retirement (or, you can do both!).
You can put a huge £4,000 per year into a LISA account, as well as having the extra 25% Government incentive for first-time buyers too – this is added per month based on what you put into the account each month, as well as interest.
You have to be over 18, and under 40 to open an account. Like the Help to Buy ISA, both you and your partner can open an account to save towards a house deposit, but only if you are first time buyers. However, there is a penalty if you choose to take your money out early; so ensure you open this account either to use for a deposit on a house or to use after 60.
If any of the above appeal to you and your own situation, then you can find out more about them and what your bank offers on their website or by visiting them in store.
After all, if it’s not in your current account at least you won’t be tempted to go and spend it on the latest beauty fads.