Isas 'effectively tax-free'
31 July 2008
Individual savings accounts (Isas) are essentially a tax-free way of saving, according to a sector commentator.
Rachel Le Brocq, a spokesperson for the Building Societies Association, explains that consumers have a certain amount of money that they can place into the accounts.
She also explains that people can have a mixture of a cash Isa and a stocks and shares Isa.
Legal & General ISAs
"Depending on your attitude to risk you can choose to invest your money in cash or stocks and shares or a mixture of them both. It gives you the flexibility of the choice and it's a very tax-efficient way of saving, so you earn more interest," Ms Le Brocq adds.
Meanwhile, according to figures obtained from the Moneyfacts.co.uk cash Isa survey, building societies presently account for over 38 per cent of all cash Isa balances.
It also indicates that a total of 36 of the top 50 Isas were offered by building societies.
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