When planning your finances it’s important to understand the difference between savings and investments. Your savings will usually need to be accessed quickly for things such as holidays, cars etc and you will need a certain amount of savings before considering investments. Investments are designed to be held for a longer term and are not always guaranteed. So whatever you’re saving for Town & Country Financial Advisers can offer you independent advice, the benefits of each type of ISA and also explain any associated risk, volatility and returns.
What is an ISA?
An Individual Savings Account available to residents of the UK that offers a favourable tax status. An ISA account investment returns are exempt from income tax and capital gains tax and no tax is payable on money withdrawn from the scheme either.
There are two types of ISAs:
Simple savings accounts usually offered by banks and building societies where the interest isn’t taxed. These accounts can be instant access, regular savers or fixed term accounts.
A stocks and shares ISA is used as a tax efficient investment account