06:44 29 August 2013
What is an ISA?
Individual Savings Account is a financial product that is available to British citizens as an investment instrument. No income tax or capital gains tax are levied on the returns.
Follow the easy steps below to open an ISA account:
1. Shop around
Hundreds of banks and building societies offer ISA with different terms and conditions. Some allow easy access which means you can withdraw your investment whenever you want, while others offer to pay a fix income if you do not withdraw your investment for a certain period of time, at least for a year or more.
Other banks offer very good deals to first time savers with bonuses only to cut the rate after a few months.
2. Determine how much you want to save
Every tax year, you can save a determined amount to cash Individual Savings Account as this tax year closes and open up another ISA account the following tax year.
3. Read terms and conditions
Once you have decided where to get an ISA, make sure you read the terms and conditions.
4. Prepare all the necessary documents
5. Apply without delay
If you have already decided on what type of Individual Savings Account you want to get and where you want to invest your money and have all your documents ready, then do not wait for the April 5 deadline where everybody rushes to renew or apply for the ISA allowance.
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