ISA - The Individual Savings Account

What is an ISA?

Click here to view our factsheet on ISAs

Put simply an ISA is an investment or savings vehicle. An ISA investment exists as a tax wrapper for your savings or investments. There are limits that you can invest each year into your ISA, but any growth in your ISA investments are free from Income tax and Capital Gains tax.

How Much can I invest in an ISA?

Each individual has an ISA allowance of £7000 per tax year. you can normally start saving in your ISA from as little as £25 per month.

Types of ISA

• Mini ISA
  ISAs are split into 3 categories. You can invest in all 3 separately with different ISA providers. You can invest in cash (like at the building society or bank), in shares (for example through a unit trust) or in life assurance (although not many providers offer this route).
  
• Maxi ISA
  You can choose to invest all your £7000 ISA allowance in shares through a unit trust.

Uses for ISAs

• General short-term savings
  if you save money each month, then why not put this money into a tax-free wrapper? Your money will grow quicker, and if you save in a cash ISA you should be able to get your hands on your money easily when you need it.
  
• Longer term savings or investment
  if you are just seeking to grow your regular savings or investments, then an ISA is just as valuable due to the tax wrapper. Why not consider investing your money into areas like shares or property?

Click here to see our factsheet on ISAs

Click here for a leaflet on investment risk.

Click here to see a leaflet on our portfolio management service.

To speak to one of our qualified advisers about an ISA, please contact us.