Why you should open an ISA
Regular savers have struggled for years with rock bottom interest rates. Out of that struggle, investing in a Stocks and Shares ISA has become one of the best ways to make your money work harder.
What is an ISA?
An ISA is an Individual Savings Account. Savers have the choice of four main accounts: Cash ISA, Stocks and Shares ISA, Lifetime ISA, and an Innovative Finance ISA.
The benefits of having an ISA include being free from UK tax on Capital Gains, on interest earned on bonds, and on any dividend income.
What is the ISA allowance?
Every tax year (6 April to 5 April) you get a maximum amount of money you can put in an ISA – this is called the annual allowance and is currently set at £20,000 (£4,000 for a Lifetime ISA).
So if you have put £15,000 into an ISA in the 2022/23 tax year, you can still deposit £5,000 until midnight on April 5th.
How does a Stocks and Shares ISA help my money grow?
A Stocks and Shares ISA lets you invest your money in shares, funds, trusts, and other types of investment without paying tax on the profits.
By investing your money, your account could potentially grow faster than a standard Cash ISA or regular savings account where the interest rate is fixed. It’s worth remembering that investing carries risk. Investments can grow as well as fall in value meaning you could lose money.
How can I avoid risk?
Risk will always be present when you are investing in the stock market. However, there are ways to lessen the impact of risk on your money.
At ii, we offer investors a range of Quick Start Funds put together by financial experts and that suit different ‘risk appetites’; these funds spread money across multiple investments so that if one company underperforms, there is less likelihood it will impact the overall portfolio.
For more confident investors, we have the ii Super 60 list made up of investments that have been carefully selected by our experts, and the ACE 40 list containing over 140 ethical investment options.
Why open an ii ISA?
Our fair, flat fees don’t grow with your investments, so the more your money grows the harder it works for you.
Every month we will give you a free trade, and with our free regular investing service you won’t have to pay any trading fees.
We have the widest choice of investments on the market, and you will benefit from expert analysis to help you choose. Find out more.
Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.