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

Comprehensive Guide to ISAs

ISA Overview

ISAs (Individual Savings Accounts)were introduced to the UK market in 1999 as a means of encouraging UK residents to save. ISAs succeeded PEPs (Personal Equity Plans) and TESSAs (Tax Exempt Special Savings Accounts)which were successful in their own right in encouraging investing and saving - With ISAs both the cash component and investment components while separated come under the one y combining both the cash saving account and and investment account are held under one roof.

This guide will give you all the basic information about ISAs you need to make savvy financial choices about your own savings strategy.

What is an ISA?

There are two types of ISA - Cash ISAs allow you to save up to £5,640 in the 2012/13 tax year without interest being subject to tax. the second type of ISA is a stocks and shares ISA or Investment ISA in which in the 2012/13 tax year you can invest up to £11,280. You can only invest or deposit money with one ISA provider in any given tax year. If you are investing in an investment ISA then you should have a longer term outlook - money can be invested in individual shares, or pooled investments.

There are many reasons why you want to consider opening an ISA:

• To build up a fund in case of a financial emergency
• To provide protection in the event of redundancy
• To save for the cost of higher education for yourself or your children
• As a means of preparing for retirement

Because ISAs provide a number of tax advantages, there are some rules governing how these accounts can be managed and used. If you decide to invest in an ISA of any kind, it is important to have a full understanding of what the limits for ISAs are and the proper procedures to use for deposits, withdrawals or transfers between ISAs.

Educating yourself about ISAs before you open your first account will ensure that you comply with all tax regulations and that you are able to reap the greatest benefit from your ISA savings and or investments.