Those building up savings for the first time could take advantage of the current climate as their nest egg will be worth more in the future, according to moneysupermarket.com.
Individual Savings Accounts (Isas) can be opened with £1 and give better returns if the funds are not dipped into for a fixed period, which could help younger people get into the habit of saving .
According to the price comparison site, Isas also provide some of the best interest rates at the moment as well as all savings being tax-free and moneysupermarket.com recommends putting away up to £300 a month.
Kevin Mountford, head of banking at moneysupermarket.com, said: "Anyone looking to start saving for the first time should consider putting their cash straight into a regular saver Isa … the rates on offer can be far more competitive and you don't pay any tax on your returns."
The limit for saving with an Isa recently saw an increase in the annual Budget report, from £7,200 to £10,200 which will come into effect in 2010.
Isas perfect for first-time savers, says moneysupermarket.com
Financial Services > Saving Accounts > News
Isas perfect for first-time savers, says moneysupermarket.com
Tue, 28 Apr 2009
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