17th February 2015 at 5:05pm
Choosing the right ISA doesn’t need to be rocket science, here’s 6 things you need to know when it comes to choosing the right ISA for you.
6 things you need to know about ISAs
#1 There are two types of ISA
You can invest in a Stock and Shares ISA, a Cash ISA, or a mixture of the two, up to your annual limit.
#2 The maximum you can save into an ISA every year is going up
£15,000 in 2014-2015
£15,240 in 2015-2016
*Tax year ends 5 April 2015
#3 ISAs are flexible
You can transfer a Cash ISA to a Stocks and Shares ISA and vice versa. Saving monthly? You can start, stop and change the amount when you want to.
#4 Choosing the right ISA doesn’t need to be rocket science
You don’t have to pick shares for a Stocks and Shares ISA – to make life easier you can choose a ready-made fund.
#5 Withdrawals are tax free
There’s no need to pay income tax or capital gains tax.
#6 ISA allowances can be inherited, tax free
From 6 April this year, surviving spouses and civil partners can inherit the value of their deceased spouse or civil partner’s ISAs on top of their own ISA allowance.
* £57 billion was savced into ISAs in 2013/14, with consumers building up bumper savings over the last 16 years worth £470 billion in ISAs by 2014. There’s still time left to sort out your ISA in this tax year and our calculator helps you see how much your ISA could be worth in the future.
This blog and any responses to comments are not financial advice. A Stocks and Shares ISA is an investment. Its value can go up and down and it may be worth less than you paid in. Laws and tax rules may change in the future. This information is based on our understanding at today’s date.