Confused by ISA’s?

With there now being seven different types, choosing the right Individual Savings Account (ISA) for you to save into can be so confusing these days. The different types of these tax-free savings vehicles currently are:

• Basic ISA – either invested in stocks and shares or cash.
• Junior ISA – where you can make contributions on your child’s behalf.
• Inheritance ISA – where you inherit your spouse’s/ civil partner’s ISA (subject to their will).
• Help to Buy ISA – the government provide a bonus (subject to limits) of 25% of what you put in to help you save for the deposit towards your first home.
• Flexible ISA – able to withdraw and replace funds in your ISA whenever you like, without it counting towards your annual ISA allowance.
• Innovative Finance ISA – contains peer to peer loans rather than cash or stocks and shares.
• Lifetime ISA – For people over 18 and under 40, the government will provide a bonus of 25% (subject to limits) of what you save.

The above provides a very basic description of the different types of ISAs and each is subject to their own restrictions, limits and rules which all adds to the bewilderment. What’s even worse, is that you may hear about ISAs in the news yet have difficulty finding out which is the right one for you and which provider offers the best service and interest rates. Added to the puzzle is knowing how much you can save each tax year, especially if you already have an existing ISA, and knowing whether you’re allowed more than one type of ISA at a time.

At Prosser Knowles, we have the knowledge and experience to help you with your choice and can research the best provider to meet your requirements. For further information and to request a call back from one of our Advisers please click here.

Written by Kay Crooke, Associate Practice Director, Prosser Knowles Associates Limited