Lloyd's offer both Stocks & Share ISAs and Cash ISAs for savers looking for a tax free or tax efficient way to invest their money. However as well as reviewing what a Lloyd's ISA can offer you it is a good idea to shop around and compare the market to try and find a top deal that fits your savings needs. You can use the comparison table below to compare a selection ISAs from different providers to see if you can find the best buy for you:
- Lloyd’s Cash ISAs – The Lloyd's Cash ISA saver allows you instant access to your savings so you can make unlimited withdrawals when you need to, while earning tax-free interest on your savings, paid yearly. Lloyd’s 2 Year Fixed Rate Cash ISA give you the option of earning a fixed rate of interest over a 2 year period providing you can lock your cash away for that long; you can access your money, but you will face a tax penalty for any amount you take out, option of interest being paid yearly or monthly.
- Lloyd's Stocks & Shares ISAs – The Lloyd's Stocks & Shares ISA give you the option of investing in three managed growth funds based on your personal attitude towards risk, you have the option of investing a lump sum, making monthly deposits or both. Lloyd's also offer their ‘Share Dealing ISA’ that allows you to directly select from a variety of investments such as; shares, gilts, bonds and funds both in UK and global markets.
Types of ISA
Before you open an ISA it is important that you understand its specific features, ISAs are categorised in two distinct groups; Cash ISAs and Stocks & Shares ISAs. You can only have one of each type of ISA each tax year and if you decide to open one of each your personal allowance still stays the same so you will need to break it up between the two accounts.
- Cash ISAs – Are basically normal savings accounts as offered by many banks and building societies, however up to your maximum personal allowance for each tax year, the interest you earn on this kind of account is tax free. Providers offer different kinds of Cash ISAs permitting different levels of access to your savings, generally speaking the less access to make early withdrawals the higher the rate of interest offered.
- Stocks & Shares ISAs – Are not investments in themselves, they operate as tax-efficient investment accounts that allow you to put money into other products such as funds and shares. There are self-select options which allow you to directly invest in different stocks and shares. There are also S&S ISAs that work as collective investment schemes, where your money is pooled with other investors into funds.
- Savers under 18 can have special Junior ISAs of both kinds, they can be opened on the behalf of someone under 16 by someone with parental responsibility or by savers aged between 16 and 18.
All providers of ISAs have to let you transfer them to other providers, as such its good idea to often check the market see what the best deal available is. However ISA providers can put an interest penalty on your account for transferring to another provider. Before you make the switch therefore, it is wise to work out if factoring in any penalty if you’d actually earn-more interest overall sticking with your current arrangement.