Indeed savers who
have used their full cash ISA allowance over the most recent
10 years have been estimated to be in the region of £2,700
better off than those basic rate taxpayers who have saved a
similar amount in a non-ISA account.
For savers, therefore,
the case for opening an ISA is fairly much unanswerable. However
it is very much the case that one ISA is not the same as another,
and different packages are offered by different providers to
savers whose individual circumstances may themselves be different.
Thus it is a good idea to seek out the best ISA deals available
before committing to any specific one.
A good comparison
site will prove an invaluable resource to you in this quest.
By using such a facility you will be able to compare and contrast
each product according to those particular criteria that are
of interest to you, and to identify the one that is most suitable.
For example, the best ISA deals for those seeking the highest
returns under any circumstances may necessarily not be the best
deals for those who would prefer the flexibility of being able
to withdraw their funds at short notice without being penalised.
Factors such as these,
plus for example the minimum deposit required in order to open
an account, will be the determining factor when you finally
come to decide which ISA you wish to entrust your hand-earned
is a Stocks and Shares ISA, and what are the benefits?
This is where your shares allowance is placed in a type of collective
investment vehicle, such as the unit or investment trust as
mentioned above. These collective investments are pooled and
taken care of by a fund manager who selects shares based on
a variety of criteria such as industry type, geographic locations,
and the value of the investment then depends on the pooled performance
of the shares overall.
and Shares ISA has two tax benefits, the first being any profits
generated from a positive share price performance are not subject
to capital gains tax, and secondly all of the tax on the bonds
can be reclaimed.
much can I deposit into an ISA?
Currently the total limit is £11,280, of which £5,640
may be cash, or you can use the whole allowance for shares if
Do I Access Money Saved in an ISA?
It’s a common misconception to think that you cannot access
the money in your ISA once it is deposited. You can, very easily
too! And by doing so you are not losing any of the tax benefit
on whatever you choose to leave within the ISA if you do not
need to withdraw it all. There is one set back however to removing
money from your ISA – it cannot be put back in again in
that same financial year, so only remove money from your ISA
if you really do need to!
I switch ISA providers once I am set up with an existing ISA
Absolutely, and it is highly recommend that you do to ensure
you are always receiving the best ISA deals in the market. There
are no downsides to shopping around and moving your ISA to another
provider. There can be a few restrictions depending on whether
you are moving your current year’s allowance or the previous
year’s allowance, and if your ISA is a cash ISA or a Stocks
and Share ISA, or a combination of both. For those restrictions
it’s simply best to ask the provider you're considering
moving over to and your existing provider, both of whom will
be able to clarify things clearly for you. Compare Best ISA
Deals online at the above websites.