16:18 13 March 2013
Types of ISAs
There are only two types of ISAs (cash and stocks & shares). You are allowed to have cash and stocks & shares ISA in each tax year. Cash ISAs are ideal for short-term savings, as these will allow you to access your money easily. Stocks and shares ISA on the other hand, are recommended for those people who can afford not to touch their money for a longer period of time (5 or more years).
ISAs for your children
For parents, you need to know that children who are aged 15 and below are not allowed to have ISAs. They need to be at least 16 years old for cash ISAs and at least 18 years old for stocks & shares ISAs.
What happens if you change your mind?
Some ISA managers offer ISA products that come with a cancellation period (usually 7-14 days) in which you can change your mind about buying. If you do change your mind during the “cooling off” period, the payment made will not count as a subscription into an ISA.
If however you changed your mind after the cancellation period, you will no longer be allowed to close your account. You’ll be allowed to transfer your account from one ISA manager to another though.
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