Why an ISA could be the right choice for you

Rosie Vare
Why an ISA could be the right choice for you
Why an ISA could be the right choice for you



With interest rates at all time lows, ISAs aren't quite the savings pot they once were.

A few recent developments still make them a worthwhile consideration however, if you have the cash to spare.

Help to Buy ISA

If you're saving for your first house then this one is a no-brainer. The maximum amount you can put away is £12,000 which will entitle you to a government bonus of £3,000. The minimum amount you can put in is £1,600 which will give you a £400 government bonus. These are issued per person, this is great for those saving as a couple because you can put away twice the amount and gain twice the bonus. To be eligible for a Help to Buy ISA you must be over the age of 16, be based in the UK and be a first time buyer with no other properties globally.

Cash ISAs

A cash ISA can be a great option, no matter how much money you're putting away as they pay you a set amount of interest over a certain period of time. You can save up to £15,280 each year and the ISA wrapper guarantees tax-free status on that cash for as long as you keep it there.

Stocks and Shares ISA

With this ISA you are investing in assets such as stocks and shares. If you're investing you should be willing to leave your money in the ISA for at least five years as the value of these investments can rise or fall. You can split your cash between ISAs however you like, but remember the key advice - always shop around before making any decisions!