Latest ISA Rates
When choosing your ISA for 2016/17 there are a range of different options open to you and what you go for will depend on things such as capital security, attitude to risk, whether you need access to cash, your objectives on why you are saving, if you need income. The current ISA allowance for this financial year is £15,240 per individual.
For investors who are happy to risk capital there a range of ISA investment opportunities available. Barclays Share Dealing ISA allows you to buy and sell equities within an ISA wrapper from £5.95 per trade. If your preference is collective funds you might want to consider the Standard Life DIY fund ISA or the AXA Self Investor ISA. Both these options give you access to some of the most popular fund managers in the country and provide the option of investing from £50 per month. Other investment ISA options include the Sun Life “Smart ISA” which allows you to invest from as little as £10 per month – this ISA offers investors a capital guarantee after 10 years. Finally peer to peer lending has become increasingly popular in the UK with a number of providers now offering FISAs or Finance ISAs as part of their offering. These allow investors to become lenders with interest paid on loans. Crowd2fund ISA offers investors estimated returns of 8.70% APR on a term of 1 to 5 years. With all investment ISAs, investors need to be aware that capital is at risk.
If you cannot tolerate the idea of risking capital then a Cash ISA might be the right way to go. There are different types of cash ISA. Instant or easy access cash isas as their names suggest provide quick access to your cash. With a notice cash isa account you will normally have to wait 30 days or more before you can get access to your money. Current deals include UK Bank of Cyprus 35 Day Notice Cash ISA paying 1.00% AER and Aldermore Bank 30 Day Cash ISA paying 1.05% AER. If you are happy to tie up capital for a fixed term you could consider a 1 to 5 year fixed rate cash ISA. The annual rate of interest will generally increase the longer the fixed term. Currently at the time of writing Bank of Cyprus UK pay 1.20% AER on a 1 year fixed deal. This increases to 1.35% AER on a 2 year fixed rate ISA and 1.45% AER on a 3 year fixed rate ISA.
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.
Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.