I remember being little and hating budget day as children’s programmes wouldn’t be on the TV, I couldn’t believe my mum would want something as dull as the budget! These days I wish I had time to watch the budget speeches, instead I catch little bits in headlines or social media. However one part that caught my eye this year was the New ISAs ( NISA ).
From the 1st July 2014 all ISAs will be converted to New ISAs, but what are the differences between the two?
From 1 July 2014 the overall subscription limit set by the Government for 2014/15 will increase from £11,880 to £15,000. New subscriptions will be allowed to be split in any proportion between a New Cash ISA and New Stocks and Shares ISA, whereas currently, investments into a Cash ISA are limited to a maximum of £5,940. This gives investors much more choice as to where to invest their money.
If you make contributions into an ISA after 6 April this tax year they will count against your New ISA limit for 2014/15, but your ISA limit will automatically increase to £15,00 after the 1st July.
Benefits of an ISA
You pay less tax on savings and investments. All money invested is free from income tax and capital gains tax.
New ISAs are very flexible, you can take money out whenever you want and even transfer to other providers.
From 1 July 2014, the New ISA will also allow you to transfer your savings from New Stocks and Shares ISAs to New Cash ISAs as you wish, whereas previously there were restrictions on transfers.
Scottish Friendly even let you split your New ISA into pots, so you can save for different things within the same ISA.
This video gives you all the information you need.
This is a collaborative post.