How to Save Your Hard-Earned Money with NISA (New ISA)
Saving money is one of my favourite subjects, I love the fact that we can stretch our budget and get as much as possible from our hard-earned money.
There are endless ways of saving money, from reducing bills to stretching your savings. I consider myself very good at shopping around for great bargains, and spending as little as we possibly can – nothing like buy one get one free offers.
I enjoy reducing our bills so, at the end of the month, we can save whatever we have left in our savings account. Hopefully we should soon have enough to move to a bigger house, and also to pay for little man’s university fees once the time has come.
What is the New ISA (NISA)?
Currently we have an ISA, and I was delighted to find out that from tomorrow, Tuesday 1st July 2014, all existing ISAs will be changed into a New ISA (NISA), as announced by the Chancellor in his budget speech. If you are an existing ISA customer like ourselves, you don’t have to do anything as the changes will be applied automatically.
How are existing ISAs changing?
In the current tax year, the overall ISA subscription limit is £11,880, equally divided into Cash ISA and Stocks and Shares ISA, so you can put away £5,940 on each product per tax year. However from tomorrow, the overall limit for 2014/15 has increased to £15,000.
The great news is that you can decide how much you want to invest on each ISA product. It is up to the customer to decide how they want to invest their hard-earned money, and which proportion of their savings will go on the New ISA (ISA) and New Stocks and Shares ISA.
I very much doubt we will be able to save £15k by April 2015 (unless we win the lottery), but I love the fact we can decide how much we put into our NISA.
Are you still unsure how the changes affect you? Check out this helpful guide and video produced by Scottish Friendly.
This post has been written in collaboration with Scottish Friendly, you can follow them on Twitter.