by Steve Hardman, of the Cumberland Building Society

Last updated 09:47, Monday, 31 March 2008

• Vist the Cumberland Building Society website

No middle man? When supply is limited, some mortgage lenders prefer to take direct business as they will be more likely to retain the customer and won’t have to pay the broker an introduction fee

There is still time to keep some of “your” money away from the taxman. With the Budget changes still fresh in your thoughts, there is still time to keep some of your money away from the Taxman.

An Individual Savings Account (ISA) is a great way of investing. The best thing about them is that you can keep some of your savings away from the taxman.

When you want to cash in your ISA you won’t have to pay capital gains or income tax.

It is important to take full advantage of your individual tax allowances. This is especially the case where investing is concerned. With the end of the tax year approaching, you should make full use of your ISA investment allowance.

You can invest up to £7,000 this tax year (up to April 5, 2008) and up to £7,200 next tax year (from April 6, 2008). Any gains you make through this investment are free of any personal liability to income or capital gains tax. (Tax rules may change in the future).

There is a great deal of flexibility in where you can invest your money within an ISA, which is not widely known.

Your money can be invested in a fixed-interest ISA if you prefer security. However, if you feel more adventurous, you can invest in property or in funds made up of corporate shares. Each of these areas has it’s own advantages and risks.

Some of the key benefits of investing in stocks and shares ISAs include:

Growth – over the long term, they have the potential for greater returns than a cash ISA or a savings account alone. It is important to recognise that the value of an ISA and any income you take from it can go down as well as up.

Accessibility – you can have easy access to your money and can make withdrawals within seven days. (A stocks and shares ISA should be seen as a long term commitment).

Flexibility – Customers can make a one-off lump sum payment, or regular monthly payments subject to ISA limits.

Expertise – Access to experienced fund managers, who invest on the customer’s behalf.

Whatever your preferred area of investment and whatever your attitude to investment is, now is the time to act and not miss out on this year’s allowance.

Like all good things, they might not be around forever...

Cumberland Building Society is working in partnership with Norwich Union to offer an initial, no-obligation appointment with a financial planning consultant to talk about your individual investment needs.

Visit your local branch to arrange a meeting. Experts are on hand to give you information and advice on a wide range of investment products.

This article should not be relied upon when making investment decisions. Always obtain financial advice.

• Steve Hardman is sales controller of Cumberland Building Society’s financial planning service, which provides advice on a range of Norwich Union investment products as well as the Cumberland’s savings products. Visit the website at www.cumberland.co.uk