Selftrade issues ISA tips

Stockbroker Selftrade has compiled a list of its 'top tips for savers' ahead of the deadline for the 2011/2012 ISA allowance.

Regarding Cash ISAs they caution considering 'how long you can lock up your money' with fixed rate ISA deals adding that savers must look out for bonus rates which will pay a return even if the variable part of the rate falls.

Furthermore they note that if you have opened ISAs in previous years you can 'mix and match' with instant access, fixed term and base rate linked accounts but warn this is 'probably only effective if you've amassed a good sum'.

Regarding a Stocks and Shares ISA they emphasise that investors should consider their 'risk tolerance' arguing that for those new to investing ETFs (Exchange Traded Funds) and tracker funds represent an 'easier way into the market'.

They note that for those looking ahead to the 2012/2013 ISA the new allowance will be £11,280 (a maximum of £5640 in a Cash ISA alone) describing the rise in the ISA allowance in line with the Consumer Price Index as one of the 'few good aspects of recent high inflation figures'.

Further information from Taxguide.co.uk on ISAs is available here

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