The start of a new tax year presents opportunities for tax-efficient investing. An ISA allows you to save money and make investments free from income and capital gains taxes.
The annual ISA savings allowance has risen steadily, and now, up to £20,000 per person can be invested each tax year. It is also possible to reinvest previous ISA savings without eating into this allowance.
As well as putting lump sums into an ISA you can also make monthly savings. Even smaller savings can grow into a useful sum.
There are two main ISA categories; cash and investment.
Cash ISAs are usually found in the high street, available through banks and building societies. Your money is held on deposit and you are paid interest. The interest rate is usually quite low, 0.75-1.5% is typical.
Compare that to, say, a Prudential PruFund Growth ISA, which has an expected growth rate, net of all charges, of 4.7%.
Investment ISAs, usually provided by financial advisers like ourselves, invest into stocks and shares and other financial assets, typically using a range of investment funds.
Funds are collective saving schemes which pool money so that it can be actively managed by a team of professionals.
There are hundreds like this, all with their own characteristics and objectives. Providing recommendations on and investing into these kinds of funds is one of our core activities.
RNS Financial Advisers is fully independent which means it can invest into the top funds without any bias.
The charge for opening an ISA this tax year is from £295. Charges can be paid separately or deducted from the plan. A full breakdown of any applicable charges will be provided by way of a full recommendation prior to investing.
To discuss making any investments please contact the office who will be able to arrange a meeting free of charge with one of our financial advisers. They will be happy to provide advice on investments, pensions, and life insurances, for you, your family and your business.