How Much Can I Deposit in an Individual Savings Account (“ISA”)?
In the tax year 2017/2018 you can deposit up to £20,000. 1
What types of ISAs are Available?
Why Should I Save Into an ISAs?
ISAs offer you a tax-efficient way to save and invest money. Subject to certain conditions, you may never pay taxes on your interest. 1
Which Type of ISA is Best for Me?
Individual circumstances differ vastly and you need to choose an ISA that fits your level of risk preference and financial situation.
Cash ISAs are considered the least risky and are often covered be the Financial Services Compensation Scheme (“FSCS”) but consequently they offer the lowest rate of return.
Stocks and Shares ISAs are typically for savvy investors looking for long term growth at variable interest rates. This, however, comes with higher risk.
IFISAs are generally for investors looking for both short and long term growth at a variable level of risk and at a fixed interest rate.
Can I Open More Than One ISA?
Each year you can open only one Cash ISA. You can open multiple Stocks and Shares and IFISAs providing that you don’t exceed your 2017/18 year limit of £20,000.1
Can I Transfer ISAs?
You can transfer Cash ISAs as you see fit but bear in mind that you can only open one Cash ISA in a year 1. For Stocks and Shares ISAs, you can transfer your capital between providers but you cannot always transfer your individual investments. IFISAs cannot be transferred as individual investments vary by platform but your capital can be transferred once investments have matured and you can also split your IFISAs between products.1
Are ISA investments protected under the Financial Services Compensation Scheme?
This will depend on the type of ISA and whether the institution providing the ISA is an authorised deposit taker. Where protection is available your capital is covered by the FSCS compensation scheme up to £75,000 with each individual ISA provider. Please see here for further details.
Are There Any Risks Saving in an ISA?
Levels of risk vary by the provider and type of ISA you choose. Cash ISAs are considered lower risk as they work like regular savings accounts and are usually covered by the FSCS. Stocks and Shares and Innovative Finance ISAs are considered higher risk and require a higher level of knowledge – but come with potentially much higher returns.
What Kinds of Returns Can I Expect?
Returns can vary drastically by account types and the investments you choose. You should research offers, platforms and promised returns very carefully and make informed financial decisions based on your individual circumstances. If you are unsure at any stage please seek advice from an authorised financial advisor.
PLEASE READ THE BEST ISA RATES DISCLAIMER