According to some financial experts, the UK is facing a potential savings crisis as home-owners struggle with the cost of living and stagnating wages. A new financial wellness index has also confirmed that 50% of British citizens lack the financial resources to save in the current economic climate, while a worrying two in five are also without long-term assets to fall back on. Without pension funds or property assets to call their own, the UK is in the grip of a savings crisis.
3 Tips for finding the best Stocks and shares ISA Options
For those who are financially prudent, however, there is ample opportunity to save money through specialist stocks and share ISA options. This is a broad and diverse market, however, so you will need to keep the following points in mind if you are to make an informed decision: –
The impact of Rates and fees
Regardless of which vehicle you use to save your hard-earned money, you will need to compare the associated fees and interest rates. These will determine the cost of maintaining an account and your final return, while it will also impact the all-important risk to reward ratio. Ideally, you will select the account with the highest interest rates and low commissions, but more often than not you will be forced to compromise and prioritise either initial savings or long-term gains. Either way, the key is to analyse the market in-depth and make an informed decision.
Tax-free Profits and gains
Depending on the service provider in question and the nature of your chosen products, you may be able to access tax-free profits through your stocks and shares ISA. This is a huge bonus, as it optimises your potential returns and minimises the amount that you are forced to pay out as an individual. This is a crucial feature to look out for, as it may prove to be significant when comparing a broad market space that is saturated with similar features and interest rates.
A lack of transfer fees and the provision of International Shares
On a final note, there are also other features and terms to look out for when comparing stocks and shares ISA accounts. One of these is the absence of transfer fees, which enables you to seamless manage your accounts and assets with greater flexibility and freedom. If you are charged when transferring or withdrawing funds, you will be forced to compromise on your decision making.
Similarly, some platforms serve as superior providers for international shares, charging fixed and low conversion fees while offering a huge range of international stock options.