My first tip is to make sure you always use your ISA allowance. If you don’t use it by the 5th April, you will lose it and it’s really important to use your ISA allowance as they shelter your investments and savings from tax.
My second tip is first of all build up some cash behind you - a cash ISA is absolutely perfect for this because you pay no tax on the interest. So build up an emergency fund, have some cash behind you in case you need it.
Tip 3 My third tip is don’t ignore your ISAs. Make sure you are getting the best rate of interest you can, and you can actually transfer your ISAs from one place to another and keep the tax efficient status. So, don’t forget, you can shop around.
Tip 4 My fourth tip is for longer term savings look at a stocks and shares ISA. It means you can invest more in ISA and over the longer term – which is at least 5 years – your performance of your ISA should be better then a cash ISA.
Tip 5 My last tip is if you are unsure what to do with your ISA allowance, whether you should do cash, stocks and shares or a mixture of both, do your homework, but take advice if you need to. Go to an independent financial advisor.