ISA’s – Don’t miss the end of the tax year
Isa’s are offered by building societies, banks, asset managers, insurers and National Savings & Investments (NS&I). There are many different types of ISA to suit a variety of individuals including under 18s, and they each have a different purpose. You can only contribute to one ISA in each tax year but you can transfer previous years ISA contributions to a new provider without affecting your current tax year ISA allowance.
You can split your savings between a cash ISA, a stock and shares ISA, a lifetime ISA and an innovative finance ISA. But you can’t pay money in to more than one of the same type each year.
- You can take money out of your ISA and pay it back in again in the same year. For example, if you saved £10,000 in an ISA but then took £5,000 out for something, you can still pay in another £10,000 this tax year, plus the £5,000 you took out. It’s a great way to lend yourself money rather than using an expensive loan or credit card. (Not all ISA providers are flexible enough to let you do this, so check before you choose your ISA provider).
- An ISA is not forever:-
If you are not happy with the return from your ISA or you want to change it from cash to stocks and shares, you can transfer your ISA to a new provider and it won’t affect your ISA allowance in the current tax year.
For more information, click here.