The type of ISA that’s right for you will usually depend on how long you want to invest for and what your attitude to investment risk is like.
A cash ISA is better suited to short term investments (less than 5 years) with little to no risk. Interest is added to your savings each year based on a fixed or tracker variable rate. Variable interest rate ISA’s usually offer instant access to your savings, while you could lose your interest if you withdraw the funds early from a fixed account.
A stocks & shares ISA is better suited to longer term investments of longer than 5 years. Savers have the choice of a wide range of investments such as funds, trusts, bonds and shares. The value of your ISA can both rise and fall depending on the performance of the investments. You can usually have access to your funds within 8-10 days.
The ISA limit for 2016/2017 is £15,240, and can be split between both types of ISA.
Is a Stocks and Shares ISA right for you?
If you’re not sure that a Stocks and Shares ISA is the right investment for you then contact an Independent Financial Adviser at Warren & Co