Cash Isas

Back in the day, saving used to be common place with much of the population keeping behind a proportion of their wages for a rainy day. That was until the mid 1990s when a combination of low unemployment, falling interest rates and markets awash with credit provided more of an incentive to borrow than save. Building a nest egg, whether to pay for a deposit on a house or to see you through your retirement, suddenly wasn’t as popular. .

Today’s government is keen to reverse that trend –which is perhaps not surprising given we’re a nation saddled with debt and a massive pension problem. It is keen to turn us back into a population of savers, for whom setting income aside is second nature.

One financial product that could help set us on our way is the Individual Savings Account – or ISA as they are more commonly known. Tax-efficient and with a range of options available to meet a variety of needs, ISAs have potential both as a temporary and long-term savings vehicle. But they also have their short comings. To help shed a little light on the issue, New Statesman, in partnership with Governor, have produced this handy guide.

19 March 2012