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Regular Savings ISAs

Regular savings ISAs will enable you to invest into your ISA on a regular monthly basis which can be important if you wish to build up tax free savings but do not have the capital to invest all in one go.

Regular savings ISAs will enable you to invest in either stocks and shares or cash, or a combination of the two, depending upon your objectives for your capital and how much investment risk you wish to take with your regular savings. Regular savings ISAs, as with single contributions, come in two forms - Cash ISAs and Stocks and SharesISA.

You will be able to invest up to a maximum £7,200 over the course of each tax year into ISAs in total, with a maximum of £3,600 in cash and the balance in socks and shares. This could be split as follows:-

£600 per month into Stocks and Shares ISA
£300 per month into a Cash ISA and £300 per month into a Stocks and Shares ISA or
Any combination you like, as long as the cash investment does not exceed £300 per month and the total investment does not exceed £600 per month

By effecting regular savings ISAs, you will benefit in all investment conditions, particularly when investing in the stocks and shares, as your fixed regular contribution will buy more units when investment values are falling, ie, you get more investment units for your fixed regular contribution, and this will be to your benefit when investment values begin to rise again.

If you are looking to invest into a Cash ISA on a regular basis, you should look at a number of banks and building societies to compare interest rates to ensure that you obtain the most competitive interest rate available. Indeed, you should review your ISA on a regular basis in any event to ensure that the interest rate being paid remains competitive and if not, you should be able to transfer your savings to another Cash ISA without penalty.

If, however, you would prefer to invest in a Stocks and Shares ISA, it is important that you seek professional financial advice to ensure that your choice of investment fund is suitable for you.