Compare ISAs
ISAs, or Individual Savings Accounts, are an often overlooked part of personal finance, despite the fact that they're a very tax-efficient way of saving. Although they have a reputation for being complex, ISA's come in two basic flavours:
Cash ISAs
Cash ISAs are similar to a standard savings account where you can deposit funds which attract interest at a fixed, known rate which depends on the account you open. Interest is paid tax free, and you can deposit a maximum of £3,000 a year.
Equity ISAs
Equity ISAs are 'investment vehicles' where you can put your savings into stocks, shares, funds, and other equities. You can invest up to £7,000 a year, and any returns on your investment are tax-free. Naturally there is no guarantee that your investments will give a return, as with all equity investment.
Investment experts invariably recommend you have a balanced portfolio of investments, and the ISA system allows for this with a Max-Isa split between cash and equity. The total value of investments into one of these ISAs is £7,000 a year, with individual limits of £3,000 and £4,000 in cash and equity respectively. These limits are fixed, and if you don't invest the full £3,000 in cash you're not allowed to increase the equity total to compensate, and vice versa.
Comparing ISAs
There are plenty of ISAs available on the market, with most of the major banks and building societies offering ISA products, not to mention those available through financial advisors and the like.
The table below gives a sample of both Cash and Equity ISAs, and is compiled by Smart Quotes who are authorised and regulated by the FSA.
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