ISA accounts in 60 seconds - different types of ISA

[GeorgePizarro]

The Individual Savings Allowance (ISA) limit will remain at £20,000 for the 18/19 tax year, letting people save tax-free in a range of different ISA accounts. But with so much choice it’s not easy to know which ISA is most appropriate for you. The below gives a good overview of the options available, but if you have any ISA related questions please ask away.

 

At the last count, the Cash ISA was the most widely held amongst UK adults with 8.5 million subscribed. However this number has fallen each year since 2008 partly due to the dismal interest rate that Cash ISAs currently offer. The average rate listed on comparison site MoneySupermarket.com was a meagre 0.8% at the time of writing.

 

Meanwhile the Stocks & Shares ISA has proved more popular, particularly over the last two years while the stock market has boomed. If someone is looking to start accumulating wealth over the long term (3+ years) then a Stocks & Shares ISA will be more appropriate for the majority of people. You can read more about IG's Stocks and Shares ISA here, and if you have any questions, ask below and I'll be on hand to help.

 

More recently the Help-to-Buy ISA became available to budding homeowners. You can open the account with a maximum of £1,200 and then squirrel away up to £200 per month. The government will add a bonus of 25% based on the size of your pot, up to a maximum of £3,000.

 

There’s also the Lifetime ISA that was launched in April 2017, offering the dual possibility of saving towards a first-home or retirement. This offers a potentially larger government bonus than the Help-to-Buy ISA too, but on stricter terms. You can use £4,000 of your £20,000 annual allowance and the government will top up your savings up by 25% each year. However you’ll get a 25% penalty if you choose to withdraw your cash or assets before you buy a home or turn 60 years old.

 

The Innovative Finance ISA can be used for peer-to-peer lending. Although this type of investing isn’t protected by the Financial Services Compensation Scheme, companies operating in this space are regulated by the FCA.

 

If you have any ISA related questions please ask away.

[PandaFace]

Which ISA’s can/can’t I have all at the same time? Can I have a cash + stocks + HTBuy and then just split the £20k across them as I want?

[GioP]

Hi  thanks for your question. Although I'm not a portfolio manager, as a Senior Sales Trader I should be able to help. You can have both a cash and a stocks and shares ISA, however the best place to get info on 'Help to Buy' is probably here: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

This HTB is an offering not covered by IG so I'd suggest having a good look on that page. Looking at the list there is a question "I already have a cash ISA – can I open a Help to Buy: ISA too?" which should provide you with your answer. Any further questions, just ask. 

 

[Leo_IX]

I need to transfer some shares to IG from another broker which are held in an ISA. Can this be done without transferring the entire ISA?

[JamesIG]

 that should be fine - just fill out the ISA transfer form as normal and make sure you only write down the stock you are wanting to transfer. 

 

[Frodoscious]

Hi. I have an ISA stocks and shares account with IG opened in 2018 in which I bought shares in the 2017-18 financial year. 

Am I correct in thinking that shares that I buy in the 2018-19 financial year, using that same account, is the correct way to be purchasing those shares. ie I don't need to set up separate stocks and shares ISA accounts every year to be compliant with ISA regulations.

Many thanks

[JamesIG]

On 8/12/2018 at 4:32 AM, Frodoscious said:

Hi. I have an ISA stocks and shares account with IG opened in 2018 in which I bought shares in the 2017-18 financial year. 

Am I correct in thinking that shares that I buy in the 2018-19 financial year, using that same account, is the correct way to be purchasing those shares. ie I don't need to set up separate stocks and shares ISA accounts every year to be compliant with ISA regulations.

Many thanks

That's correct! You shouldn't need to set up a new account, simply add to your previously created one each year with the fresh allowance amount. 

[Guest Nigel]

Hi. A question about the safety of investments held in IG's stocks & shares ISA accounts. If the company fails, are the shares held in the investors' individual names so we maintain ownership? How safe is our holding?

[JamesIG]

9 hours ago, Guest Nigel said:

Hi. A question about the safety of investments held in IG's stocks & shares ISA accounts. If the company fails, are the shares held in the investors' individual names so we maintain ownership? How safe is our holding?

Please note that stocks bought through IG are held in a nominee account.

"Because a non-trading company owns the shares, an investor's assets are legally separate from the stockbroker's assets and liabilities. If the broker becomes insolvent, the investor's stocks are protected from creditors."

Read more on Nominee Accounts here: https://www.investopedia.com/terms/n/nominee.asp#ixzz5QQSnqmCq 

[wiggly]

Not sure if this is the right place but I think so.

I am wondering if it is possible with an ISA SmartPortfolio to withdraw from the market but leave the cash in the ISA wrapper so it may be re-invested at a subsequent date without losing the tax benefit.

If there is a more suitable forum for this please let me know. And if it is possible, how do you effect this on the interface?

Thanks

[Novice27]

On 09/03/2018 at 09:22, GeorgePizarro said:

The Individual Savings Allowance (ISA) limit will remain at £20,000 for the 18/19 tax year, letting people save tax-free in a range of different ISA accounts. But with so much choice it’s not easy to know which ISA is most appropriate for you. The below gives a good overview of the options available, but if you have any ISA related questions please ask away.

 

At the last count, the Cash ISA was the most widely held amongst UK adults with 8.5 million subscribed. However this number has fallen each year since 2008 partly due to the dismal interest rate that Cash ISAs currently offer. The average rate listed on comparison site MoneySupermarket.com was a meagre 0.8% at the time of writing.

 

Meanwhile the Stocks & Shares ISA has proved more popular, particularly over the last two years while the stock market has boomed. If someone is looking to start accumulating wealth over the long term (3+ years) then a Stocks & Shares ISA will be more appropriate for the majority of people. You can read more about IG's Stocks and Shares ISA here, and if you have any questions, ask below and I'll be on hand to help.

 

More recently the Help-to-Buy ISA became available to budding homeowners. You can open the account with a maximum of £1,200 and then squirrel away up to £200 per month. The government will add a bonus of 25% based on the size of your pot, up to a maximum of £3,000.

 

There’s also the Lifetime ISA that was launched in April 2017, offering the dual possibility of saving towards a first-home or retirement. This offers a potentially larger government bonus than the Help-to-Buy ISA too, but on stricter terms. You can use £4,000 of your £20,000 annual allowance and the government will top up your savings up by 25% each year. However you’ll get a 25% penalty if you choose to withdraw your cash or assets before you buy a home or turn 60 years old.

 

The Innovative Finance ISA can be used for peer-to-peer lending. Although this type of investing isn’t protected by the Financial Services Compensation Scheme, companies operating in this space are regulated by the FCA.

 

If you have any ISA related questions please ask away.

I opened an ISA account to buy shares, but have just discovered IG's minimum consideration fee is 90 pounds when I place an order On Exchange rather than On Quote.

I have 4000 pounds remaining to buy shares for my ISA and would like to buy 4000 pounds worth of shares in one company, but I'm being blocked from buying due to the consideration fee only amounting to a total of 52 pounds and not their minimum 90 pounds. 

What options are there?

Should I be placing an order On Quote rather than On Exchange?