If you are trying to find the ISA that will help you get the most out of your annual allowance, you might be wondering what a Sainsbury’s ISA could offer you. Sainsbury’s do not currently offer a Stocks & Shares product but they do offer a Cash ISA. In addition to seeing what Sainsbury’s could offer you however it may be wise to shop around to try and find the top deal for the kind of Individual Savings Account you are interested in. You can use the table to compare a selection of different types of ISA from various providers, and click the links to apply:
Sainsbury’s Bank Cash ISA:
Offers a variable interested rate to savers, it works on a tiered system so savers who put more away may be able to achieve a better rate of interest. This account also permits unlimited penalty-free withdrawals. Interest is calculated daily and paid on annually.
There are two different distinct categories of ISA; Cash accounts and Stocks & Shares accounts. ISA rules permit you to open up to one of each type of account each tax year, you can open only one kind if you prefer. If you do decide to open one of each type of ISA then you will have to break up your annual ISA allowance between both accounts as it stays the same.
- Cash ISAs – Work much like any other kind of savings account offered by a bank or building society. The main difference is that any interest you earn on the account is paid tax-free. There are different kinds of Cash ISA available from various providers with options including Fixed Rate, Easy Access and Instant Access so you can select a product that fits your saving needs.
- Stocks & Shares ISAs – Are a kind of tax-efficient investment account that can be used to invest in products such as bonds, gilts and shares. It is important to remember that the value of these investments can decrease so you could end up with less than you originally invested. This type of ISA is considered tax-efficient as while you do have to pay tax on dividends, you do not have to pay capital gains or income tax on profits made from value increases on investments within the account up to your maximum allowance. Some products are known as self select and allow you to directly choose what stocks and shares to invest in, others work by giving you a choice of managed funds to put your money into.
Transferring an ISA
It is possible to transfer an ISA to another provider or to another ISA with the same provider. However some accounts will charge an interest penalty for doing so. This means that while it can be beneficial to see if you could benefit from switching, before you make the change over you should first check to ensure that any penalty you would incur will not negate any potential benefit of changing.