Taking the time to analyse the best ISA rates on offer in the UK is one of the most appealing options available to consumers who are struggling for cash but still want a chance to store funds in a competitive savings accounts.
This is the opinion of the director for independent advisory firm Ark Financial Planning, Phil Perry, who insists that people without large funds available can still plan ahead when it comes to their financial future.
Mr Perry explained that the most suitable products for individuals who have “absolutely no savings whatsoever” are “deposit-based” accounts, as these tend to provide account holders with easier access to their money.
“The first port of call would always be an ISA, depending upon the client’s tax position of course. There are many facilities out there these days [where you can] find the best scheme,” noted Mr Perry.
He also stated that instant access packages are usually the most worthwhile deal for a consumer to take out, as it avoids having to tie up finances for long periods of time.
He advised against storing money in deposit-based funds for more than a year at a time, as there is a widespread expectation that the Bank of England will opt to boost interest rates at some point in the next 12 months.
The Bank’s Monetary Policy Committee has voted to maintain the base rate at 0.5 per cent for 29 months in succession, but many financial analysts feel this trend of keeping the figure at this historically low level will come to an end sooner rather than later.
“If that is the case and you have fixed yourself for something longer, realistically you may fall behind the times,” he concluded.