Kevin Jenkins
Kevin Jenkins

With only a handful of weeks left until the end of the tax year on April 5, a Lichfield-based independent financial advisor (IFA) is urging people to consider their investment choices carefully.

Traditionally this time of year sees a rush of people top-up their existing ISAs or open new ISAs in the knowledge that if they don’t use their ISA allowances by April 5, then they will lose them.  And to all intents and purpose this is correct, but with interest rates being as low as they are currently, Kevin Jenkins from Key Financial Management, which is a trading name of 2plan Ltd, is advising to look carefully at the interest rates being offered.

Kevin said:

“I generally recommend for people to take advantage of their tax free ISA allowances, but I would also advise people to pay close attention to the interest rate being offered on cash ISAs as there may well be alternative accounts which have higher interest rates and negate the tax perks of a cash ISA.”

Currently the annual investment limit into a stocks and shares ISA is £7,200, or up to £3,600 can be invested into a cash ISA with the remainder in stocks and shares.

For those aged 50 and over, the limit is £10,200 – £5,100 of which can be invested in a cash ISA.  This new limit, which came into force in October 2009, will be extended to all other ISA investors in the next tax year.

Kevin added:

“With the end of the tax year fast approaching, now is a good time to make sure all your finances are in order and I would advise anyone wanting financial advice to obtain independent financial advice rather than seeking advice from an adviser who is tied and can only either advise on the products of one provider or from a limited selection of providers.”

Easter falls early this year and means that the last working day of the tax year is April 1.