ISAs are a very popular way to invest because you do not pay any tax on your investment's income or gains. In 2014 the government renamed them as NISAs (New ISAs) to publicise a significant increase in the ISA limit. Key things to know about ISAs are:
- Tax benefits There is no tax to pay on income and gains
- Putting money in The total ISA allowance for this tax year is 20,000. If you have already put money in a cash ISA this year then this counts towards this limit.
- Getting money out The money can be withdrawn at any time, although ISAs are generally used for longer term investment (more than 5 years).
- Risk and return We only offer stocks and shares ISA investments. These will probably provide higher returns than cash ISAs in the long term, but there is a risk that you get back less than you put in. Our risk/return explorer can help work out if investing is for you.
- Minimum investment The minimum investment is £100 or £50 per month.
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