ISA Investment Limits
Within an Investment ISA you can save up to £20,000 during the 2017/18 tax year.
You are able to split your allowance between the three types of ISA or consolidate your limit in to one manageable account.
ISA allowance limits apply to everyone on an individual basis, so if you’re married or in a relationship, you can both hold your own ISA, each with the full allowance.
What do Investment ISAs offer?
Stocks and Shares ISAPossibly gain much higher returns than on a Cash ISASome risk involved, you could withdraw less than you depositedReady-made portfolios, managed accounts and risk assessed options are available to make investing easy
Innovative Finance ISAPotentially receive a higher rate of interest than a standard Cash ISA Peer to Peer lending is fully regulated by the Financial Conduct AuthoritySome risk involvedCurrently over £5+ billion has been lent in the UK and its only growing
How to Choose the Best ISA?
Choosing the best ISA can be difficult, particularly when there are so many options to choose from. Many people are torn between investing their full ISA allowance in to one ISA or splitting it between Cash, Stocks and Shares and Innovative Finance ISA accounts.
The answer purely depends on your financial circumstances and your savings goals. However, by comparing the options available then you should be able to make a decision on what works best for you.
Having a limited tax-free allowance does mean that pooling your money in to one kind of ISA can make sense. It’s manageable and a larger amount will incur more interest.
The low interest rates currently offered by banks has meant that more people than ever before are considering investing their money in Stocks and Shares or Innovative Finance in hope of higher returns. Traditionally, investing has always reaped higher rewards but the element of risk involved means that you could also be left with less than you originally invested.
While many people are put off by this, with many platforms offering ready-made portfolios and options where your funds are managed for you, it’s really never been easier to start investing.