Individual Savings Accounts (or ISAs) are tax-free savings and investment accounts whichl usually pay a higher interest than a normal deposit account. However before you open one you must familiarise yourself with any access restrictions that may apply.
On 1 July 2014, Cash ISAs and Stocks and Shares ISAs were merged into a new single ISA called New Individual Savings Account (NISA) with a much higher limit of £15,000 per year.
Cash NISAs contain cash savings, so there is no risk to your money as it will not be invested.
As cash NISAs are tax free, the government imposes an upper limit on the amount that can be invested per tax year.
Despite the limits an NISA usually pays a higher interest than a normal deposit account, however before you open one you mustfamiliarise yourself with any access restrictions that may apply. Many NISAs work on a fixed notice access system, where 30 to 60 days notice is required before you can withdraw you money without a charge.
For more information on NISAs including the current limits, click here, and for cash NISA's click here.
To find out your rights when switching a cash NISA account to another bank or building society, follow this link.
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