Post Office ISA

Post Office ISAs

If you’re looking for a tax-free or tax-efficient savings product you may be wondering what a Post Office ISA might be able to offer you. The Post Office offer a selection of cash ISA’s however, it is wise to make sure you are getting the most out of your annual allowance; you can use the comparison table above to compare some of the top best buys available in the ISA market, and click the links to apply:

Post Office Cash ISAs:

• Post Office Online ISA – Allows you the flexibility to split your ISA savings across variable and fixed interest rate products all held in one online account. Some of the products have restrictions on the number of withdrawals you can make during each tax year. Withdrawals can be made from the holding account.

• Post Officer Premier Cash ISA – Allows you to earn tax free interest on your savings up to your maximum allowance. You can make up to two withdrawals a year.

• Post Office Fixed Rate ISA – Allows you to lock your savings away for a choice of 1,2 or 3 years. You cannot add money to these savings on a regular basis or make withdrawals whenever you need them. The longer you lock your money away the better the rate of interest you can earn.

• The Post Office also offers a Junior ISA.
  

Information about ISAs

There are two chief types of ISA available; Cash ISA’s and Stocks & Shares ISA’s. You can have up to one of each type of ISA each tax year by breaking up your annual allowance between the two as you like.

• Cash ISAs: Are essentially a savings account that enjoys a tax-free status up to your maximum annual allowance. Many providers of Cash ISA’s offer a selection of plans which grant varying levels of access to your savings once opened such as, Instant Access, Easy Access and Fixed Term, As a general rule the less access you have to make withdrawals and deposits the greater the rate of interest offered on the account.

• Stocks & Shares ISAs: A stocks and shares ISA is a tax-efficient investment account. This means the capital in the account can be used to invest in other products such as, shares, funds, trusts and stocks. You don’t pay capital gains tax, or income tax on gains made within the ISA you do still have to pay tax on any dividends you earn. Stock’s and Shares ISAs are capital at risk products as the value of your investments can fall as well as rise, so you could get back less than you paid in, You also do not have FCSC protection.

• Junior ISAs: Cash ISA’s and Savings and Investment ISAs are also available for those under 18 as junior ISAs. These can either be opened for someone under 16 years old by someone with parental responsibility or by the young person if they are aged between 16 and 18. The money invested in these accounts cannot be withdrawn until at least the 18^th birthday of the account holder.

ISA transfers:

All providers of ISAs have to allow you to transfer your account to another provider, this makes it wise to often compare the market for the current best buys to see if you could benefit from transfers, remember however that your would-be new ISA provider does not have to let you transfer in. Providers are also allowed to place an interest penalty on their accounts for transferring away. Therefore before you make a transfer you should check if factoring in any penalty if you would actually be better staying put.