Although the government spending cuts may not have a direct impact on everybody, it’s worth bearing in mind the underlying message that the coalition is trying to get through.
The UK can no longer afford to carry on spending and getting into yet more debt, and this applies just as much to individuals as it does to government departments.
Making the most out of any cash left over at the end of the month should become a priority for freelancers. There are lots of savings products currently on the market but the trick is finding the one with the best returns, whilst at the same time ensuring you can get hold of the funds in case of an emergency.
Fixed-rate ISAs can pay better interest rates than those available on other savings accounts. For example, the Post Office offers a two year fixed-rate ISA at 3.1% while the Halifax is currently offering a rate of 2.8% on a variable rate ISA with unlimited withdrawals.
In fact ISAs generally offer the best interest rates, but it’s worth bearing in mind that although the returns are exempt from capital gains and income tax, you are currently only allowed to invest £5,100 per year in an ISA. Another fact to bear in mind with ISAs is that some providers only guarantee their current rate for 12 months, after which it will be reduced and consumers may well find it worthwhile moving their money elsewhere.
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