Tax-efficient growth in an ISA
ISAs are a special account that encourages saving by offering the opportunity to grow your savings with a tax advantage built in.
This tax year (April 2012-13), you can invest up to £11,280 in an ISA. Of that, £5,640 can be saved in a cash ISA and the remainder in a stocks and shares ISA with either the same provider or another of your choosing. If you have no cash ISA, you can invest all £11,280 in the stocks and shares ISA. However, this does not work the other way around – you may not invest more than £5,640 in a cash ISA, in any given year.
The advantage of the cash ISA is that it can also offer access to your cash in an emergency – making it a great cash savings option for the short, medium and long term.
Get ISA advice today – make a savings enquiry or call 0800 678 5929 to speak to one of our advisers
The Cash ISA
The cash ISA keeps your savings in cash, making it an investment that holds your savings with a minimum of risk. For that reason, cash ISAs have a broad appeal to the more cautious, conservative saver. Cash ISAs are a popular choice with users of bank deposit accounts, as they combine the security of the bank account with the attraction of tax-efficient growth.
This tax year, you can save up to £5,640 in a cash ISA.
Cash-based savings options are less attractive when the Bank of England’s base rate is low, as returns are hampered by low interest rates. There is also the risk, when inflation is high and interest rates are low, that the value of your cash is eroded over time.
However, for those with a longer term view who wish to potentially achieve greater returns, ISA investments are also available with the stocks and shares ISA.
The Stocks and Shares ISA
The Stocks and shares ISA uses a range of different investments to invest your savings at higher risk than cash, but with the long-term possibility of a better return than cash. This product is more suitable for the saver prepared to leave their money invested for 5 years or more.
Find out more about the Stocks and Shares ISA or call 0800 678 5929 now.
11052012 – JOR
