What is an ISA?
An ISA is a tax efficient savings or investment account offered by banks, insurers, asset managers, building societies and National Savings and Investments (NS&I). There are two main types of ISA, cash ISAs and a stocks and shares ISA.
Cash ISAs are simply savings accounts where interest is not taxed. Just like normal saving accounts, there is a wide range of Cash ISA’s available, such as instant access, fixed rate and accounts with base guarantees.
Stocks and Shares ISA
Stocks and Shares ISAs let you put money into different types of investments, such as unit trusts, open ended investment companies (OEICs), Investment Trusts as well as government and corporate bonds. Such investments can go down as well as up.
What is the ISA Limit?
Each year you have an ISA allowance, for tax year 2013/2014 (6 April 2013 until 5 April 2014) your allowance is £11,520. You can save up to £5760 in cash ISAs with the remainder in stocks and shares ISAs. Or, you can invest your full allowance in a stocks and shares ISA.
Here at 3R we have gained much experience in finding the right kind of ISA for our clients. Lets us makes sense of this wide array of differing products to find what is best for you.
Please Note – The value of your investment in an ISA can go up as well as down.