Saving money is a considered to be a good way to prepare for your future but how can you get the best return on your investment? Knowing which savings opportunity could yield the highest return can be beneficial, but understanding the risk level is critical too.

Currently, one of the most popular ways to save money is with a stocks and shares ISA. If you’re looking for a viable savings opportunity, take a look at these five reasons why an ISA is worth considering:

1. It’s an Easy Way to Invest

If you have money to invest, but you feel nervous about playing the market yourself, a stocks and shares ISA account can be a great way to dip your toe in the water. Some investment platforms offer selected fund portfolios based on your risk appetite, so you won’t have to make difficult decisions or handle the day to day running of your portfolio yourself.

2. You Get Tax-Free Returns

Stocks and shares ISAs are a popular way to save because the interest you earn or the returns you make are tax-free. If you invest in other ways, you’ll typically need to pay income tax and/or capital gains tax on any dividends or growth your investments make. By using a stocks and shares ISA, however, you can reduce your overall tax liability and minimise the tax you have to pay on your returns.

3. You Can Achieve Better Returns

Putting your money into a savings account enables you to earn interest. However, savings rates are relatively low at the moment, which means you won’t earn much interest. Even if you save money with a cash ISA, you’ll still be getting a relatively low rate of interest. In comparison, you could generate higher returns with a stocks and shares ISA, all be it at a higher risk as you are reliant on your investments performing well.

4. You Can Start Small

Most people assume that you have to have thousands of pounds before you can start investing, but why not consider an ISA account with low minimum contributions? ISA provider, Willis Owen, offer a stocks and shares ISA with a minimum contribution of £25, for example, so you don’t have to invest much in order to get started. The flexibility associated with stocks and shares ISAs means you can invest a small amount or use up your yearly annual ISA limit, if you choose to.

5. It Can Be Exciting

Investments can fall, as well as rise, but seeing how your money performs can be exciting. If you’re fed up watching your savings increase by pennies every year in a standard savings account, the chance to generate higher returns can be attractive. Providing you’re aware of the risks involved and choose a risk level that suits your financial situation, a stocks and shares ISA account can be a fun way to manage your money.

Get the Right Investment Advice

There are many different investment opportunities out there, as well as a variety of different savings plans. If you’re unsure how to invest your money or which method of saving is right for you, it can be helpful to talk to a professional. By getting advice prior to making a decision, you can be confident that you’re managing finances in the best way for you.