ISA - Individual Savings Account.
- An ISA is a ‘wrapper’ designed to go around an investment, to make it tax-efficient.
- There are two types of ISA investments.
- Stocks and shares ISA: this gives you the chance to invest your money in equities, bonds or commercial property without paying personal tax on any returns you might make
- Cash ISA: this is like a normal deposit account - except that you pay no tax on the interest you earn.
- The ISA limit for 2016/17 is £15,240.
- You can invest up to the annual limit in a cash ISA or a stocks and shares ISA or a combination of both.
- The annual ISA allowance is for every eligible adult. This means a husband and wife, for example, could put up to £30,480 between them into ISAs this tax year.
Stocks and Shares ISA
Invest in a range of unit trusts with a tax-efficient ISA.
Our Junior ISA could give your child a financial head start in life.
- The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on individual circumstances.
Stocks and shares ISA
- Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed.
- You may get back less than you invest.
- Although there is no fixed term you should consider stocks and shares ISA investments to be medium to long-term, ideally five years or more.
- Please remember the value of your child’s investment may fall as well as rise and is not guaranteed.
- Your child may get back less than the amount invested.
- The money invested in a stocks and shares Junior ISA is locked away until your child becomes 18 and then rolls up into an adult ISA. You should consider it to be a medium to long-term investment, ideally of five years or more.