What is an ISA?
An Individual Savings Account (ISA), is a financial product which allows you to save your money free from Income and Capital Gains Tax. The current ISA allowance is £20,000. The four main types of ISA that are available include Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs and Lifetime ISAs. Here at evestor we offer a Stocks & Shares ISA.
What is a Stocks & Shares ISA?
A Stocks & Shares ISA (Individual Savings Account) allows you to invest in a variety of investment products such as funds and individual shares in a tax efficient way. Compared to a Cash ISA, a Stocks & Shares ISA is higher risk to the investor as returns are not guaranteed, and you can get back less than what you put in.
How does a Stocks & Shares ISA differ from a Cash ISA?
Putting your money in a Cash ISA is regarded as saving, doing the same in Stocks & Shares ISA is investing.
Cash ISAs are used for short term saving, normally 5 years or less. Investing in a Stocks & Shares ISA is for the long term, generally for a minimum of 5 years.
You are guaranteed a specific interest rate with Cash ISAs and you will not lose money. Investing your money in a Stocks & Shares ISA is riskier, though there may be greater opportunity for growth, there are no guarantee of returns and you could lose money.
Investing in a Stocks & Shares ISA will cost money. Fund managers charge fees for managing your fund and/or stock purchases.
I already have an ISA product; can I open another with evestor?
You can open one of each type of ISA in any given tax year but you are unable to contribute to more than one of the same ISA type in the same tax year. For example, you can have a Stocks & Shares ISA and a Cash ISA, but you can’t contribute towards two different Cash ISAs in the same tax year. If you have already opened a S&S ISA this tax year and wish to open one with evestor, then you must transfer all contributions that were made this tax year and cease any further payments into your old Stocks & Shares ISA. Alternatively a GIA account may be an option to consider.
How much is the ISA allowance?
The current ISA allowance is £20,000 for the current tax year. Each tax year runs from 6th April until 5th April the following year.
You can split your yearly allowance between different ISAs. For example, you can put £10,000 in your Stocks & Shares ISA and £10,000 in your Cash ISA.
Do you offer a Lifetime or a Help to Buy ISA?
We currently only offer a Stocks & Shares ISA.
Do you offer a Junior ISA?
We currently only offer a Stocks & Shares ISA. This is something we hope to bring to our product range in the future.
Still got questions?
We're always happy to help, if you can't find an answer to your question you can speak to one of our dedicated support specialists via webchat.