ISA Savings
ISA Savings
One of the most financially sound ways of saving in the short term is through a Cash ISA because ISA savings are protected from tax, so you get to keep everything you have invested.
With a Cash ISA, your ISA savings must not invest more than £3,600 per tax year, but as long as you stick to this limit, you can put money in and out of the account whenever you like.
The benefits of ISA savings include:
- No tax on any income you receive from your ISA – including dividends, interest and bonuses
- No tax on capital gains arising on your ISA
- You do not have to declare any income or capital gains from your ISA or even inform the HMRC that you have the account.
- You can take the money out of your ISA at any time without losing tax relief
Your yearly tax free allowance is actually £7,200, but only £3,600 may be invested in cash - the rest can be put into a Stocks and Shares ISA. You can pay into both types of ISA during the same tax year provided you do not exceed the limit of £7,200.
Get your FREE ISA Brochures for a selection of the best ISA savings accounts, or see the table below for some of the latest UK deals.
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Please bear in mind that:
Investment ISAs are designed as medium to long term investments, for example at least five years.
The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
If you choose an index-tracking trust which invests overseas, exchange rate variations may cause the value of your investment to increase or decrease.
If you unsure what Investment ISA plan is right for you speak to an independent investment adviser.