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6th
Apr 2020
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New (tax) Year, New You: How to Make the Most of Your ISAs in 2020/2021

New (tax) Year, New You: How to Make the Most of Your ISAs in 2020/2021

Dawn breaks on the morning of April 6th 2020 – the sun is (potentially shining) and the new tax year has begun. With £20,000 of possibilities for your tax allowance for this new tax year – we’ve answered the most common questions that savers have at this stage. 

The main questions we see at this point of the year is all about how to get your ISA sorted early, to take advantage of the tax free returns for the whole of the tax year – especially if you’re using it for your income.

We’ve looked at our four most frequently asked questions for this stage in the year and answered them for you here – so without further ado...

1. When Can I Open an ISA? 

You can open an ISA from the very first day of the new tax year - this year, that is 6th April 2020. 

Get in touch with the provider you want to open an ISA with (if you already know) and they'll be able to set this up for you - either by phone or online. 

2. How Much Can I Invest? 

The ISA allowance ceiling for this tax year is £20,000 per person per tax year. You can choose to put this into one ISA, or spread it across multiple ISAs. 

The maximum for certain types of ISA - such as Lifetime ISA - is lower. For example, a you can only put in £4000 to a Lifetime ISA each year. 

The same is true of Junior ISAs - you are able to put up to £9000 into a JISA per year - a notable increase from last year's allowance of £4,368!

3. Can I Invest with a New Provider? 

Yes! 

If you have found an ISA rate with a provider you haven't previously held an ISA with and want to take advantage  you are completely able to do so. 

If you want to browse a wide range of different types of ISAs from different ISA providers, browse our rate pages, linked at the bottom of this blog. 

4. Can I Transfer any Previous Years' ISAs?

Yes - transferring ISAs is perfectly fine. We actually wrote two separate in-depth blogs on how to do this, so make sure you give those a read before you do so.

Have you got any other questions? Get in touch! 

Otherwise read more of our blogs, and content on Cash and Stocks and Shares ISA rates for your 2020/2021 ISA needs. 

Junior ISAs

Junior Stocks & Shares ISA

from Fidelity

Regular Savings
  • Investment Options: Fidelity offer over 3000 Funds from over 70 Investment Companies.

Why we like it: You can tell Fidelity your risk preferences and they will suggest funds for you to consider for your child. You can also use their "Select 50" list of Fidelity's favourite funds. Alternatively If you want to look at all investment options you can use their poweful search tool. Fidelity have a low cost service fee that starts from 0.35% pa.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Investment Growth Plan ISAs

FTSE 100 Enhanced Kick Out Plan

from Investec

Allow ISA Transfers
Maximum Potential Return 9.50% per annum
  • Counterparty: Investec Bank plc
  • Term: Up to 6 years

Kick out plans seem to attract particular interest when markets are repetitively flat since they can provide competitive returns even if the FTSE stays relatively flat with the potential for 9.50% annual growth.

Important: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

  • 9.5% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • Product designed to be held for the 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. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. 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.

Selected ISAs

Stocks & Shares ISA

from Wealthify

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose your risk profile and have an investment Plan built and managed for you
  • Invest From: No minimum

Why we like it: Choose your level of risk from cautious to adventurous and have a plan expertly created and managed for you. Create multiple plans with different risk levels, Ethical plans also available. Invest as little or much as you like, add regular payments and top up whenever you like. Withdraw money or transfer out without notice or penalty fees. Wealthify app lets you check how your Plan is performing, manage your transactions and provide investment news and insights. Simple annual management charge of 0.6%

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

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2nd June 2020

 Compare latest sharedealing ISA account platform providers. Use your 2020-21 ISA Allowance of up to £20,000.

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