It’s that time of the year again, March, the last month to make the most of our ISA allowance (assuming you are a UK resident of course). Have you used up yours yet? Have you used any of your allowance? Remember growth is free from tax – yay!
£10,200 is the current 10/11 annual ISA allowance. That’s quite a lot of squids in that allowance even when you look at it on a monthly basis, £850 a month, wow. Of course its all relative to your level of income so lets turn it into a percentage. Are you saving 10% of your earnings (after tax) into an ISA? If not, is it 5%? 1%? Nothing? You should really consider saving into an ISA because its unofficial slogan is ‘Use it or lose it’. Once the year is over you can wave goodbye to that unused allowance as you can’t claim it back in future years. 🙁
For the more organised bunch of people I’m sure that you’ve got your monthly ISA top-up in place direct debiting from your bank account and are thinking that you don’t have to do anything, especially as most companies will automatically open a new ISA for you for the coming financial year. But perhaps you should review how much you pay in and see if you can add another £10 or £20 to the monthly top-up? Or if you like % more, another 2%, 5% ?
Check with your ISA provider as they may have some great deals to encourage you to place more money with them which includes waiving a deposit/handling fee which if its 1%, great, that’s another 1% of money working hard for you.
Remember that Quillionaires wouldn’t look at ISAs if they had credit card debt to pay off first.