7 Mar 2025
ISAs: what are they, and which one is for me
Since being launched back in 1999 Individual Saving Accounts (ISAs) have been very popular for those wanting to put money into savings. There are four types of ISA, and the majority allow flexible saving and the ability to withdraw funds easily. There are financial penalties on certain products, these usually pay the most interest.
Four types of ISA
- Cash ISA
- Stocks and shares ISA
- Innovative finance ISA
- Lifetime ISA
You can choose to save up to the personal allowance across a number of accounts or products (excluding the Lifetime ISA).
Criteria to open an ISA
In the UK you must be a UK resident (or if not meet other specified criteria). You must be 18 years old, unless you are opening a Junior ISA (under 18 and a British citizen). If you are opening a Lifetime ISA you must be under 40 years old.
Lifetime ISA
The Lifetime ISA is specifically to either help savers purchase their first home, or to save for later life (pension). You need to be over 18 and under 40 years old to open an account and you can put in up to £4,000 each year until you are 50. The government will add a 25% bonus up to a maximum of £1,000 each year.
Not for everyone
Depending on the product you go for, you may end up locking your money for some time and aren’t able to withdraw it without penalty. ISAs are aimed at people who pay tax on the interest their savings make. If you don’t pay tax on interest (total ISA allowance is £20,000 per financial year), you may find you earn more interest on a standard savings account.
Recent posts
Best UK Mortgage Rates this Week
3 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Stamp Duty Rush as Deadline Looms
4 days ago
According to Rightmove, a whopping 500,000 UK homebuyers are rushing to finalise their home purchase before the new Stamp Duty rules change in April.
The UK government is introducing new rules for Energy Performance Certificates (EPCs) that will impact landlords. Here's a summary of the key changes
Should I buy or rent in 2025?
11 days ago
Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.
Benefits of buying a new build home
21 days ago
According to the Office for National Statistics, last year (ending March 2024), there were 153,800 new homes completed in the UK. To help the housing crisis, the UK government has pledged to build 1.5 million new homes in the next five years.
Check out some of the reasons why a new-build home might be for you.
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
7 Feb 2025
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
More information
Trusted by
