Whether you are trying to find the right Cash ISA, Stocks & Shares ISA or are interested in both shopping around to find the right product for your specific needs is a good idea, while Marks and Spencer’s Bank is not currently accepting new applications to invest in the HSBC World Selection Portfolio, they do still have Cash ISA products available for new customers. In addition to seeing what an M&S ISA could offer you, you could also check the comparison table to see a selection of ISA products from different providers:
- M&S Cash ISA – allows you to split your existing and new ISA subscriptions between fixed and variable rates. With the Fixed Rate Savings option the M&S Cash ISA can offer you a fixed rate of interest for 1,2 or 3 year terms. With the M&S Advantage Cash product you earn a variable rate of interest but have the option of making deposits and withdrawals whenever you want without a penalty.
There are two distinct categories of ISA available; Cash ISAs and Stocks & Shares ISAs, you can open up to one of each kind of ISA each tax year however if you do open both then you will have to break up your annual ISA allowance between the two accounts.
- Cash ISAs – Are essentially savings accounts providers may offer different types of Cash ISA such as; Fixed Rate, Easy Access and Instant Access plans. The key difference compared to a standard savings account however is that up to your maximum annual limit all interest paid to these accounts is tax-free.
- Stocks & Shares ISAs – Are not investments in themselves, they rather provide a tax-efficient investment account that allows you to invest into various products like stocks and shares as well as; gilts, bonds and funds. This type of ISA is described ‘tax efficient’ as while up to your maximum allowance you do not have to pay Capital Gains Tax or Income Tax up to your maximum allowance on investments within the account, you do still however have to pay tax on dividends. Within Stocks & Shares ISAs there are ‘Self-select’ products that allow you to directly invest in your choice of shares and stocks, as well as plans that offer you a choice of managed funds dependent on your own attitude to risk. It is important to remember that with Stocks & Shares ISAs that you can get back less than you originally invested, if the value of your investments goes down.
Transferring an ISA
It is possible to transfer your ISAs from one provider to another or from one ISA to another ISA with the same provider; however they can impose a penalty for doing so.
This means that while it is a good idea to shop around and see if you can find a better deal, before you make a switch you should check if you’d actually be better off staying put once you have factored in the interest penalty you would incur for moving.