Individual Savings Accounts
ISAs – use your allowance, or lose it!
If you have money saved in a bank or building society, and aren't using an ISA, then you're doing the taxman a big favour.
A cash ISA is simply a tax-free deposit account. Depending on the rules of the account you can have instant access or tie your money up and get a higher rate.
You can invest up to £3,600 between now and 5th April.
If you are a longer-term saver, you might prefer a stocks and shares ISA. These invest your money in shares, corporate bonds or property. Usually this is in the form of a pooled fund where you are investing with many other people who all want the same thing. Over the medium to long term, these have a chance of beating cash ISAs, but there’s no guarantee.
If you invest in a cash ISA, you can invest a further £3,600 into a stocks and shares ISA. Alternatively, you can invest up to £7,200 in a stocks and shares ISA alone.
If you would like a chat about ISAs, please contact our independent financial adviser, David Hopkinson.