Savings Savers can accumulate up to £7,000 each financial year until 2005/2006. From then on the maximum amount you can invest each financial year is £5,000. You must be 18 or over to open an ISA. The plans are guaranteed to run for ten years. They were bought in to replace the old TESSAs and PEPs - Tax Exempt Special Savings Accounts and Personal Equity Plans.

The point of these plans is that individuals do not have to declare any income or capital gains they receive to the Taxman. ISAS's are made up of three componants, these different components are: - Cash, Stocks and Shares (Equities) and Life Assurance.

Easy Access Accounts These are usually offered with a lower rate of interest. They give the saver the option to access their money at short notice without paying any penalties.

Notice Accounts This account requires a notice period of an amount ranging from 7 to 120 day notice for a withdrawal of funds. The most common period is 30 to 60 days. There may be a penalty incurred for the withdrawal if instant access to your savings is required.


Bonds If you have a sum of money that you are prepared to invest in a Bond or Term account, you will be looking at receiving at what is normally the best rate of interest of any savings plan. Your money would normally be tied up for anything up to 5 years and you would generally be unable to add to your initial amount.

Regular Savings Accounts These accounts are not opened with a lump sum but are added to on a regular monthly basis. Most accounts allow instant access to your money. This account usualy has the most conditions attached ie.making only certain ammounts of withdrawls and deposits.

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