Many teachers took advantage of TESSAs in the past in order to save money in the building society tax-free. This was a Conservative Chancellor’s contract, which was subsequently revoked when Labour took power. Many teachers who have such contracts are confused as to the actions that can be taken with them and it is vital, once again, to seek advice as to whether or not contributions can be maintained, or indeed how to maintain the tax-efficiency of these contracts when they mature.
“The ability to simplify means to eliminate the unnecessary so that the necessary may speak” - Hans Hofmann
As we are talking about monies held on deposit it is always worth remembering that any reputable financial adviser would always recommend that a certain amount be maintained on deposit to meet emergencies / luxuries. Many teachers, however, keep far too much money in the building society and thereby run the risk that inflation will eat the true value away. Getting the correct balance often involves detailed discussion as to your own planned expenditure. Where that money is held becomes important, because some of the high street accounts with names such as “High Income Account” often do the opposite.