What is an ISA?
What is an ISA?
Individual savings accounts, or ISAs, let you save money and earn interest on up to £20,000 without paying any tax on what you earn. You’ll be given an allowance for every tax year, and for 2020/21 the allowance is £20,000, which you can put into a number of different types of ISA.
There are different types of ISAs available depending on your circumstances and requirements
How many ISAs can I have open at the same time?
You can have a number of ISAs open at the same time, but keep in mind that after the first year your interest rate might be significantly lower.
How can I add money to my ISA?
It will depend on how your bank or building society lets you manage the account, but in general you should be able to deposit money by:
- Using your bank’s mobile phone app
- Logging into your account on a web-browser
- Phoning your bank directly to organise a cash transfer
How can I withdraw money from my ISA?
Most banks and building societies will let you withdraw money from your account to transfer it into another account you hold – however make sure to check whether you might lose your allowance or tax-free bonus as a result.
What is a Junior ISA?
A Junior ISA is an account you can open on the behalf of a child that offers tax-free returns in much the same way as a standard cash ISA – however the child to whom the account belongs won’t be able to access the money until they’re 18. At this point it becomes a full adult ISA and they’ll take full control of the account.
What is a help-to-buy ISA?
Help-to-buy ISAs are no longer available to new customers, however if you opened one before 30 November 2019 you’ll still be able to use it and take advantage of the bonus it offers until November 2029.
They essentially offer a government bonus of £50 for every £200 you save towards a new home – to a maximum of £3,000.
What are flexible ISAs?
Flexible ISAs allow you to withdraw cash from your ISA at any time and return it by 5 April (so within the same tax year) without losing any of your allowance.
What currencies can I hold in my ISA?
Your ISA will only be able to hold pounds sterling.
Can I consolidate multiple existing ISAs into one account?
Yes – in fact this is recommended for the reason mentioned above. If you transfer funds from previous ISAs into your current one you’ll be able to take advantage of the better interest rate.
How do I report an ISA scam?
We’ve been made aware of a number of ways in which fraudsters are trying to use the MoneySuperMarket brand to try and trick consumers in handing over money, or financial details, inslucing false ISA products.
If you think you’ve been contacted by a fraudster, please stop all communication with them and report it to Action Fraud. If it’s someone impersonating MoneySuperMarket, please contact our customer services team.
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Comparing savings accounts
You can compare savings accounts using a number of factors. These include the interest rates they offer as well as how long the rate will last, the amount you might need to deposit in order to open the account, and how you can access the account. Once you’ve decided which account you want, simply click through and you’ll be taken to the provider’s website.
Not sure what type of account to go for? Our Savings Decision Tree can help you decide.
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