Despite current government promising not to increase income tax, national insurance or VAT, it’s possible that tax rates will increase in upcoming months.
With a General Election looming, neither of the main political parties have ruled out increasing tax rates in their manifestos.
Although no guarantees have been made by either party, it appears likely that there will be changes to tax rates, whoever gets into power.
How will this affect savers?
If income tax increases, you’ll ultimately have less disposable income. With your net income reduced, you may have less to save each month. Due to this, it’s essential that you choose your savings accounts and investments carefully.
By selecting the right options, you could benefit from the best savings rates and you may even make a significant return on wise investments.
Of course, the option that’s right for you will depend on many factors. If you don’t want to tie your money up for too long, you may opt for a 1-year fixed rate savings account, for example.
However, if you feel comfortable with leaving your savings untouched for some time, you may want to explore the possibility of longer term investments.
Getting the best rates
In order to make the most of your money, it’s vital that you compare savings rates. By getting the highest savings rate you can, you’ll increase the amount of interest you’ll earn on your capital.
Alternatively, if saving isn’t the right option for you, then you might be looking for the best investment opportunities available. However, finding the best investment rates can be tricky.
As investments can fall, as well as rise, there is the possibility that you could lose capital. However, by managing your portfolio appropriately, you can tailor your investments to suit your needs and, therefore, maximise your potential return.
With the political uncertainty surrounding the General Election, now could be the ideal time to review your savings and investments.
Finding the top savings accounts and the best way to invest could help to ensure that you aren’t negatively affected by any upcoming changes and that your money continues to work for you.