You are able to invest anything up to the tax threshold for that year and choose to have it spread across a Cash, Stocks and Shares and Innovative Finance ISA or consolidated within one account.
A Stocks and Shares ISA is a tax-efficient way to invest. Despite the name, you can invest in many things besides Stocks and Shares, all with varying levels of risk.
A Stocks and Shares ISA can be a good way to put aside some money each month or invest some extra cash. This kind of account is not advised if you don’t have any other savings or are in debt because you won’t be able to access your money easily if you need to and you could make losses.
However, Stocks and Shares ISAs have the potential to provide better returns than any other savings account.
Many people are turning towards investing in light of the ever falling interest rates offered by banks. While there are risks involved, you can generally expect a good rate of interest on your investments. With many accounts now offering managed portfolios, it is now easy for people to begin investing.
It’s relatively easy to transfer your Cash ISA in to a Stocks and Shares ISA or change ISA providers and can take around 30 days. It simply involves filling in a form but be careful of penalty charges from your current provider.
You can invest your full ISA allowance of £20,000 into a stocks and shares ISA or choose to split your allowance with a Cash or Innovative Finance ISA.
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
28th February 2020
Launched in 2017, offering a saving bonus of 25% from the government, Lifetime ISAs offer highly attractive benefits for the right people. If you’re saving for your first home, or saving for retirement – you should be thinking about opening a Lifetime ISA.
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I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.