Individual savings account
If you’re looking for something better than a normal savings account, with more favourable interest rates and additional investement opportunitites you can choose an individual savings account to handle you money.
In order to open this type of account you must be a full-time employee and must be over the age of 18. Individual savings accounts are available at banks, building societies and other large financial institutions, but you can also apply for it at a financial advisor or any ISA manager. The biggest advantage of and ISA account is that the investments made and the gains from them are tax exempt until a certain limit.
There are two types of ISA account, a Mini ISA account and a Maxi ISA account, with the name referring to the amount of annual investements allowed. A Mini ISA allows you to invest in cash for the amount of £3 000 in a tax year or up to £4 000 if you decide to invest in stocks and shares.
A Maxi ISA allows you to covers an investment up to a the limit amount of £7 000 per year, with a cash investement limited to £3 000. The income received and the capital gains from investment are completely tax exempt up to the limit.