Which ISA?
Which ISA?
With so many offers on the market, it can be difficult to know which ISA to go for. Firstly, you will want to decide if you are interested in investing in cash, stocks and shares or both. There are two types of ISA - Stocks and Shares ISAs and Cash ISAs.
You have a yearly tax free allowance of £7,200 - if you invest this money into ISAs, it allows you to accumulate savings and interest that is not subject to tax and receives a higher interest rate than standard savings accounts.
-
Stocks and Shares ISAs - Invest up to £7,200 per tax year
-
Cash ISAs - Invest up to £3,600 per tax year
If you have only a Cash ISA, you may only invest 3,600, if you have just a Stocks and Shares ISA, you can invest up to £7,200. If you have both a Cash ISA and a Stocks and Shares ISA, you may pay into both accounts, as long as you do not deposit more than £7,200 during the year, and of that £7,200, no more than half (£3,600) goes into the Cash ISA.
There are many different types of Cash ISAs - instant access, notice etc. Stocks and Shares ISAs vary too, you could choose to have your funds selected for you, or you may want to go for a self select ISA where you choose your investments yourself.
ISA rates also vary between provider, and you will need to decide what type of rate you want to go for, for example, fixed or tracker.
When you have withdrawn money from an Cash ISA, that money cannot be replaced once you have deposited £3,600 in that tax year. Withdrawals can be subject to penalties such as loss of interest or a lower rate of interest. Some accounts require that you keep a certain balance in the account to benefit from the high interest rates offered on ISAs.
For a selection of ISA accounts, get your
FREE ISA Brochures or see the table below:
Alternatively click on isa advertising links below:
Investment News Headlines
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.