Financial tips for the new year issued

For consumers considering their financial options in the new year, cash individual savings accounts (Isas) could be the way forward - it has been suggested.

According to the Telegraph, cash Isas can be an ideal place to store funds for a short period of time, before making investments in stock market-based funds later down the line.

The publication likes the financial product to traditional bank or building society accounts, as the customer has instant access. One difference, however, is that there is no need to pay any tax on interest.

Indeed, the annual limit on cash Isas is scheduled to increase to £3,000 to £3,600 in April, following an announcement by the government early last year. The ceiling on stocks and shares Isas is also going to be raised at the same time, with investors able to put £200 more into this finance vehicle each year, bringing the limit up to £7,200.

Towry Law spokesman Patrick Connolly told the newspaper: "No-one can pick the bottom of the market, so we never encourage our clients to try."

This suggests that investors do not necessarily have to time the market; however SVM Asset Management's managing director Colin McLean indicated that people may need to wait a few months to see how the financial markets settle.

Last year, former economics secretary to the Treasury Ed Balls said that Isas were "a vital part of [the government's] approach to promoting saving".