ISAs or Individual Savings Accounts, are a popular way for us to invest and save. One of the main appeals of these is the fact they’re tax-free on savings of up to £15,240, however, ISAs aren’t simply a one-size fits all scenario.
There are a variety of different options you can consider. Better still, these can suit specific needs and situations; in this post we’ve detailed a few examples of ISAs that you may wish to invest in.
Firstly, there are Cash ISAs. If you’re aged 18 or over you can quickly set one of these up with a variety of different providers. The interest rates on these can vary though, so it’s worth shopping around first.
Stocks and Shares ISAs
With this ISA, you can invest part, or all of, your annual allowance in corporate or government bonds, shares in individual companies, other funds and occasionally cash. The advantage to this ISA is that you don’t have to pay Capital Gains Tax on any potential gains made, even if you go over the £11,100 CGT allowance. Also, you don’t have to pay income tax on any income you get from your investments.
Help to Buy ISAs
Another option is a Help to Buy ISA. These were unrolled in 2015 for first-time home buyers and these see the Government essentially topping up what you save by as much as 25 percent. There is a minimum requirement with this though for this; you must save £1,600 or more for the Government to add £400. There are also limits though, with a cap of £3,000. These won’t be available after the end of November 2019.
If you’re looking to help your children save, then a Junior ISA is a good choice. These are for anyone under the age of 18 and they have an annual allowance of £4,080. When the child turns 18, this turns into an adult ISA. However, these aren’t necessarily always the best choice. It’s worth speaking with a specialist financial advisor like Tilney on such matters. Then, you’ll be able to know you’re taking the right course of action to help your children save.
So, whether you’re looking to start up a savings account for personal use, or you are considering the financial future of your family or children, make sure you take note of the above. There’s sure to be an ISA option that suits your needs.