• Posted 3rd May 2016

Things to Know About Cash ISAs

Having Cash ISAs are the probably one of the best ways to save money. Today, most of the people may even have a one and are making most from it. However, there are some minority who are still unsure and do not know important details about it. In this post, we bring you all the facts straight about Cash ISAs which will surely help you decide to open a one. You don’t have to pay any tax on the interest earned The main benefit of having Cash ISAs are they are like savings accounts where you can save your money without paying any income tax on the interest earned. You have to be 16 years old to open Cash ISA Anyone cannot open this account. You must be a UK resident and be 16 or above to open it. You can pay up to over £15,000 a year Every tax year, there is a limit on how much you can save on Cash ISAs. The savings can be in cash ISA, stocks and shares ISA, an innovative finance ISA and even combination of any of them. On this year’s 2016/17, the limit is £15,240. You can open only one Cash ISA each tax year Even though you can only open one Cash ISA each tax year, you will be able to withdraw your funds from your previous account if you wish to. After transferring all of your money, you have to close your old account. However, you need to comply with the transfer rules and all of the ISA providers may not agree to this. This is why you need to ensure that whether your provider provides this flexibility or not. You can get Cash ISAs from most banks They are available from most banks, building societies, and supermarket banks. To ensure your money’s safety, go for banks or building society authorised by the Financial Conduct Authority (FCA). They will cover up to £75,00 as compensation.