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 advice, detail the benefits of each type of ISA and also explain any associated risk, volatility and returns.
What is an ISA?
An Independent 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 An ISA account investment returns are exempt from income tax and capital gains tax and no tax is payable on money withdrawn from the scheme either. This could be subject to government change.
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.
New Individual Savings Accounts (NISA)
Investing in corporate bonds, stocks & shares and other assets that fluctuate in value.