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Use Money Saving Expert tips for your next ISA

In a depressed economy, an ISA remains a sensible investment. By following the tips from the website Money Saving Expert about ISA investments, it is possible to maximise your returns from this interest-free savings account, even when rates are low. It makes sense to use your annual ISA allowance to the full extent possible.

Tax-free investments

Money Saving Expert ISA advice is updated annually and will help you to make a considered choice about how to invest your ISA allowance for the financial year. You have the choice of investing up to £11,520, of which up to £5,760 can be in a cash ISA.

For those unfamiliar with ISA investments, the website offers a simple introductory guide to ISAs, explaining the rules and technicalities, how to open an account and how to switch your ISA between banks and building societies.

They offer handy advice on your maximising your returns. For example, small investors are encouraged to place as much of their ISA investment as possible into cash, as the tax-free benefits of a shares ISA are less obvious.

Money Saving Expert also makes clear how inmportant it is to follow correct procedure when transferring an ISA. Never withdraw the cash yourself as this will immediately take the savings outside the tax-free protection. The new provider should arrange the transfer and preserve the benefits.

One of the site's most useful functions is the best buy guide. This tracks the latest interest rates on offer from banks and financial institutions so you can keep up-to-date on the best potential returns for your cash ISA savings.

Risk management

The Money Saving Expert ISA guide offers handy and impartial advice but, when it comes to stocks and shares investments, it cannot gauge an investor's attitude to risk. Share investments can fall or rise, so your investment is never entirely secure. Look for a fund that suits your investment priorities, whether they are security or high returns.

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