How great it would be if you could money for doing nothing at all and even better-get it all tax free.
The trick lies in Cash ISA accounts wherein you don’t pay any tax on the interests that you accrue. The infographic below demonstrates what a $3,000 in an ISA in 1999 would be worth by 2011-2012 and where you could then spend that money.
Cash ISAs are high interest paying savings accounts which allow you to save up to a certain amount each year; the current 2011-2012 limit is £5,340. Please note that this is a total deposit limit – if you reach the limit and then withdraw some, you won’t be able to later top it back up. Choose your withdrawals wisely!
This graphic depicts the growth of a Cash ISA and was created on behalf of MoneySupermarket.