There are many ISA’s to choose from so it’s easy to be left wondering which ISA is right for you. Comparison tables can be a great way to start. Follow the links provided to find more information on any of the products mentioned on our tables.
When choosing an ISA, there are a number of things to consider. We’ve highlighted some of the most important factors below:
- Timescale of investment - If you need access to your capital and you are not looking to invest for the long term you should consider a Cash ISA. However, if you are happy to tie up capital for the medium to longer term you may wish to consider a Stocks and Shares ISA which has the potential to provide better returns then a Cash ISA over the longer term
- Attitude to investment risk - If you are not prepared to lose capital then a Cash ISA is probably the better option for you. It good to remember that, over the long term, inflation can erode your capital in real terms so getting a good rate of interest on your cash ISA should be a priority. If you are prepared to risk capital to achieve higher potential returns then a stocks and shares ISA may be the best option for you.
- Charges - Different ISA plans will have different charges. It is important that you are aware of what these are and how they could affect your ISA performance. Also be aware that some accounts apply account closure charges if you try to switch before the agreed amount of time.
ISAs are great way to save a lump sum or become a regular saver. You can use the comparison tables on this site to help you find a suitable ISA. We recommend that you seek financial advice from an independent financial adviser, if you are unsure about what you need.
Making the Most of your ISA Allowance
You can only have one ISA in each financial year, so research your options carefully. Whether you choose a cash or investment ISA, give some thought to your savings goals beforehand to determine what the right ISA is for you.
You can't carry your tax-free allowance over from one financial year to the next so, if you've got enough cash to hit your limit, think about maximising your ISA allowance. The cash ISA allowance for the financial year 2018/19 is £20,000.
An ISA is a great way to save for a specific event like a deposit for buying a home, a wedding, holiday, or starting a family
If you opt for a cash ISA, keep an eye on the interest rates available from other providers. You can usually switch cash ISA providers without incurring any charge.
If you don't use your full allowance, consider regular saving plans - it's easy to set up a direct transfer from your current account into your cash ISA to make sure that you put aside a certain amount each month without fail.