ISA savings: A great habit to get into

Pledging to save money in a Cash ISA can be a great habit to get into, whatever time of year it may happen to be. One of the key advantages of making a money-related resolution is that many of the financial options at your fingertips make it easier to stick to. With savers able to make deposits through direct debits and manage their money online, getting into the regular habit of saving could be as simple as a few clicks - or a quick phone call.

Whatever way you choose to save, it’s important to pick an account that will help you get the most out of your money. Saving in one of our Cash ISAs can be a great way to grow your savings pot, as there’s no tax to pay on the interest generated. Introduced by the Government in 1999, ISAs have a set limit on how much can be saved in them within a tax year. From 6 April 2011 you’ll be able to save up to £5,340 in a Cash ISA over the following 12 months, a rise on the last tax year’s £5,100 limit. One way to achieve this could be to split the amount into chunks of up to £445 a month over 12 months.

The type of ISA you choose could depend on your personal situation and savings goals – and these factors can have an effect on the rate of interest you can expect to generate. The security of a fixed rate of interest could appeal to some, while others may go for accounts with a variable rate. The level of access you want to your account can also affect your interest earning potential – choosing to lock away your money after making one annual deposit will usually generate a bigger return than an instant access account which allows for deposits and withdrawals.

At Lloyds TSB, we want to help you get the most out of your money, so don’t hesitate to ask us if you’d like some help when you come to compare savings accounts from our range of options. We’ll be happy to talk you through your options over the phone or in one of our many branches. Alternatively, you can always check out or savings options on our website, at a time and place that suits you. Here, you can also make an application if you feel we have the right account for you.

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