ISA Ideas

• Cash ISAs
• Stocks & Shares ISAs
• ISA Transfers
• Fund Supermarket ISAs
• Junior ISAs
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• Income ISAs
• Growth ISAs
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• ISAs Explained

Ideas for your ISA

Tax efficient saving using your annual ISA allowances

Welcome to ISA.co.uk, your first stop for ISA ideas.

From 6th April 2012 the ISA allowance for 2012/13 has gone up to £11,280 per person so make the most from your allowance and shelter your savings from the taxman today!

 

James Caldwell, Director

Cash ISA Selection

Provider	Plan Name	Deposit Taker	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 3 Year Deposit Plan	Investec Bank plc		3 years	17.25%	More Info >
3 year structured deposit plan Capital protected Target return of 17.25% Available as a Cash ISA & for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	Income Deposit Plan	Royal Bank of Scotland plc		6 Years	7.00% per annum	More Info >
6 year structured deposit plan Capital protected Available for Cash ISA & Cash ISA transfers Also available to businesses, charities and trusts Income is not guaranteed Plan designed to be held for full term May close early if oversubscribed

Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Instant Access Cash ISA Selection

Fund Manager	Account	Rate	Term	More Info
	Nationwide Online ISA	3.10%	Instant Access	More Info >
Introductory fixed rate of 3.10% AER tax-free until 30 September 2013 After 31st October 2013 reverts to variable rate Minimum opening balance of £1,000 Transfer in from existing cash ISAs
	ING Direct Cash ISA	3.00%	Instant Access	More Info >
3.00% AER guaranteed rate for 12 months (2.96% gross p.a.) Open with £1 Instant access Tax free savings

Fixed Rate Cash ISA Selection

Fund Manager	Account	Rate	Term	More Info
	2 Year Fixed Rate Cash ISA	3.70%	2 Years	More Info >
3.70% tax free/AER fixed on balances of £10,000 or more 3.40% tax free/AER fixed on balances of less than £10,000 Minimum opening balance of £3,000 Additional deposits allowed
	1 Year Fixed Rate Cash ISA	3.30%	1 Year	More Info >
Minimum opening balance of £1,000 Manage your account online Withdraw cash early if you need to (subject to loss of interest) Transfer from other cash ISA providers

Income Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	Income Builder Plus	Morgan Stanley		5 years	8.40% per annum	More Info >
5 year structured investment plan Potential maximum quarterly income of 2.10% (8.40% per year) ISA transfers allowed Capital at risk Income is not guaranteed Plan designed to be held for full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Growth Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 Enhanced Kick Out Plan Investec Version	Investec Bank plc		Up to 5 years	13% per annum	More Info >
5 year structured investment plan Potential for early maturity after years 1,2,3 and 4 ISA transfers allowed Also available to businesses, charities & trusts Capital at risk Plan designed to be held for full term May close early if oversubscribed
	FTSE Defensive Bonus Plan	Morgan Stanley		Up to 6 years	9.50% per annum	More Info >
6 year structured investment plan Potential early maturity return of 9.50% x the number of years the plan has been active  ISA transfers allowed Also available to businesses, charities and trusts Capital at risk Plan designed to be held for full term May close early if oversubscribed

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

ISA

ISA History

Individual Savings Accounts (ISAs) were introduced in the UK in 1999 replacing Personal Equity Plans (PEPs) and Tax Exempt Special Savings Schemes (TESSAs)as a simplified savings vehicle for those aged 16 and over. The current ISA market at the time of writing is estimated to be worth over £400 billion. In 2010-11 figures from the Office of National Statistics showed that people in the UK put more money into stocks and shares ISAs than they put into pensions. In 2010-11 approximately £15.8 billion was placed into Investment ISAs while pension contributions amounted to approximately £14.2 billion. In the same year roughly £38 billion was placed into Cash ISAs. According to TISA (Tax Incentivised Savings Association) ISAs are now established as a core savings product for 42% of UK households.

How ISAs Work

ISAs need to be seen as tax "wrappers" or "shelters" as in themselves they are not investments. These tax wrappers protect your cash or investments from tax and the key facts can be summarised as follows:

• Cash ISA - Under the 2012/13 ISA Allowance of £11,280 individuals are permitted to shelter up to £5,640 within a Cash ISA. With a Cash ISA money is placed on deposit and all interest is paid gross without tax deducted. Money can be paid into a cash ISA on a lump sum or regular amount basis.
• Stocks and Shares ISA - Under the 2012/13 ISA allowance up to £11,280 can be invested. this covers investments in shares, unit trusts, investment trusts, open ended investment companies, life insurance policies, corporate bonds and gilts. Money can be paid into a stocks and shares ISA on a lump sum or regular amount basis.

With the current ISA allowance you can put £5,640 into a Cash ISA and the balance into a stocks and shares ISA. If you decide at a a later date that you want to transfer your Cash ISA into a stocks and shares ISA this is permitted but not the other way round.

You can transfer ISAs from Previous Years

Cash ISA and Stocks and Shares ISA providers will accept ISA transfers from other providers although you should check to understand the timescales involved for transfer as some providers can be slow in instigating the transfers. This option means that if you are not happy on how your ISA is performing you can vote with your feet. For Cash ISAs it means you are not stuck if your existing ISA provider has become uncompetitive and you can get a better rate of interest elsewhere. For Stocks and Shares ISAs the same principle applies although with investment you should take a longer term perspective on performance and not necessarily move your ISA on short term investment performance. For more information see ISA transfers

Tax Treatment of ISAs

The tax benefits of ISAs can be highlighted as follows:

• Income Tax - There is no tax deducted from interest so for a Cash ISA all interest will be paid gross. For dividends on shares and unit trusts etc
• Capital Gains Tax - There is no tax deducted for capital gains within an ISA. Losses within an ISA cannot be offset against gains outside your ISA

There is no requirement currently by HMRC to report income or capital gains on cash or investments held within your ISA.