What is an ISA?
A reader from Essex is curious about what an ISA is.
Andrew Norton, Halifax investments expert, tackles the problem.
Derek from Essex asks:
I've heard a lot about ISAs recently. What are they? And can anyone have one?
Andrew replies
It is an Individual Savings Account. ISAs were launched to UK residents by the government in 1999.
They help protect your savings and investments from the taxman.
You can save up to £7,200 each tax year through cash deposits, investment in stocks and shares, or both.
A tax year runs from April 6th in one year to April 5th of the following year.
Currently there are two types of ISA: a Cash ISA and a Stocks and Shares ISA. You can transfer the value of your Cash ISA to a Stocks and Shares ISA, but not the other way round.
Investors who transfer current years' Cash ISA subscriptions to a Stocks and Shares ISA can then save their full £3,600 cash allowance in another Cash ISA in the same tax year. Amounts invested in previous tax years do not count towards a new tax year's allowance, so you always try to make the most of your yearly allowance
If you have a question for Andrew, go to the myfinances.co.uk Ask the Investments Expert section
Or for more information on your investment options go to investments at Halifax
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