What’s the first thing you think of when somebody mentions an ISA?

For most people, it’s the tax-free benefits! Although this is a fantastic feature, it’s not the only benefit you should consider when choosing your ISA – the returns, terms and flexibility can vary greatly.

The wide range of ISAs can get a little confusing, although as some accounts offer in excess of five times the average interest rates, it’s definitely worth checking that you’re making the most of your tax-free allowance. The good news is that it’s simple to switch accounts if you find something better!

Think of your ISA in the same way as a new relationship – it’s a big commitment and you may be tied to your decision for several years. With this in mind, the Kuflink experts have put together five top tips to ensure the next ISA you meet is ‘the one’!

What’s your type?

As the saying goes, each to their own! There are many different types of ISA to choose from, including Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, Lifetime ISAs and Help-to-Buy ISAs. Each ISA offers a unique set of features and benefits, so whether you’re saving for a specific purpose or just want to ensure you’re getting the best return on your money, it’s important to do your research.

There will be highs and lows

Interest rates are a deciding feature for many ISA holders, but with average ISA returns now sitting at just 1.03% (that’s below inflation!), it’s more important than ever to shop around for the best deal. Why allow your hard-earned cash to underperform when you could earn up to 5.35% with Kuflink’s IF-ISA? *

Are you looking for a long-term relationship?

Although a longer ISA term often means a higher interest rate, there are a number of things you should consider before deciding on a long-term ISA relationship! Account terms generally range from 1 year to lifetime options, and although some ISAs offer flexible access to your cash, many are fixed-term – make sure your commitment suits your own financial needs.

Be wary of expensive break-ups!

It’s crucial that you check your exit fees before switching ISAs – your existing provider may charge you to transfer out, and your new provider may charge you to transfer in. If you’re looking to switch to an Innovative Finance ISA that doesn’t charge a fee for transfers in, check out the Kuflink IF-ISA. What’s more, Kuflink doesn’t charge any ISA management fees, so you keep every penny you earn!

Know your boundaries

Each tax year, HMRC set an annual ISA allowance, which increased from £15,240 in 2016/17 to £20,000 for the current tax year, and will remain at £20,000 for 2018/19.

This is the maximum you’ll be allowed to save across your entire ISA portfolio for the year, so if you have more than one ISA, you’ll need to keep an eye on your total savings amount to ensure you don’t exceed the tax-free limit.

Kuflink’s IF-ISA at a glance…

If you’re in search of an ISA with higher returns for the 2018/19 tax year, then why not consider a transfer to Kuflink’s IF-ISA?

Earn up to 5.35% interest pa*
Tax-free interest on P2P investments
1, 3 or 5-year fixed term
Kuflink does not charge you to transfer in**
HMRC-approved ISA Manager

*Capital is at risk. Rate based on a 5-year fixed-term investment. You should seek independent financial advice. Tax treatment depends on individual circumstances and may be subject to change in future.

**You may be subject to exit fees from your existing ISA provider.