07:20 26 November 2013
Confused about the benefits of individual savings accounts? Read on!
In a financial year, you may hold only one cash ISA in addition to one stocks and shares ISA. However, there is no limit to how many you may accumulate from different companies.
Yes. Just be sure, open the new savings account without closing an old one or it may count as your ISA allowance for the upcoming year.
Cash ISAs can be moved to either a cash ISA or a stocks and shares ISA. Stocks and shares ISA can be transferred to another stocks and shares ISA account. But beware of exit charges.
Oops! ISAs are only meant for individuals. However, couples can spread their assets over different savings accounts to shelter more of their cash from taxes.
Cash ISAs do permit those types of withdrawals with penalty on reduced interest. On withdrawing money, it loses the luxury of tax umbrella.
They must be 16 to open an adult cash ISA and 18 to open a stocks and shares ISA. Young children can have a Junior ISA.
It is a tax-free ISA for children under 18 with a limit of £3,720, which they may access after they are 18. Children can have one of stocks and shares ISA or cash ISA, as they are entitled to hold only one savings account at a time.
ISAs are for UK residents only. Although one holds a current ISA for tax purposes while overseas, they may not continue to contribute to it or open a new one. Diplomatic Crown employees and military families are an exception though.
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