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Bank Account News
'Save six months' salary for a rainy day' - 07/01/2008
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It is important for people to try to keep around six months' salary in a savings account for an emergency, Hargreaves Lansdown has said.
This money is often best saved in a cash individual savings account (Isa), according to Ben Yearsley, an investment manager with the asset management provider.
"Everybody should have about six months of salary saved up as rainy day emergency cash," he said.
Mr Yearsley added that people who have already set money aside in a cash Isa will be able to transfer the funds into stocks and shares Isas in April 2008.
"A lot of people do hold stocks and shares in their Isa, they like the excitement of holding individual shares," he said, adding that when an investor finds a "big winner", they can make a large tax-free gain.
Cash Isas currently have a maximum deposit allowance of £3,000 per financial year. In April, among the changes to be made to the system is a subscription limit increase to £3,600 per year and an increase to the limit in stocks and shares Isas from £7,000 to £7,200.
In addition, new measures will be taken to convert child trust funds into Isas when children turn 18.
© Adfero
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