Fri, 18 Aug, 2017

ISA SAVINGS ACCOUNTS

ISA Savings Accounts-
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Free ISA Savings Brochures

An ISA savings account allows the saver a chance to save money and collect interest without having to pay taxes on the interest. Users of an ISA savings account can save up to 7000 from April 6th to April 5th each year.

 

Savers can open an ISA account if they are at least 18 years old and should be a UK resident. People who are in the armed forces or are paid by the British Government are also able to open an ISA.

 

There are two different types of ISAs: Maxi ISA and Mini ISA.

 

The components of an ISA include cash and stocks and shares. With a cash ISA, savers put in a certain amount of cash and then benefit from a minimum return plus interest.

 

Stocks and shares is an option where the user invests the funds in collective shares. If the saver plans to let the money set in the account for a long time, this option allows for larger gains. However, this option does not guarantee a gain at the end of the term.

 

Individuals can only contribute to one Maxi ISA or two Mini ISAs every tax year.

 

Up to 5th April 2008, the maximum amount an individual can invest in an ISA in any one year is 7000, with the cash element comprising no more than 3000. After April 5th, the Maxi ISA maximum rises to 7200, with the cash element at no more than 3600.