ISAs just got NISA! No really, they did! Don’t run away now because of that rubbish headline, OR because you think this is going to be a long and boring post – it’s not. It’s going to be so simple that even I can understand it! Whoop!
So here’s the deal. At the moment, should you be sensible enough to have an ISA, you can save up to £11,880 tax free. Yes, thanks HMRC for that wonderfully convenient number for us to remember. But wait – there’s more on the inconvenient number front – only £5,940 of that can be in a cash ISA. Though you can have as much in a stocks and shares ISA as you like, up to…wait a minute, I wrote it down here somewhere…yes, up to £11,880. Minus whatever’s in your Cash ISA, of course. Bored? Confused?
Me too. But the good news is that it’s all getting much simpler. Like, properly, sensibly simple. From 1st July, this is the deal…
- ISAs will now be called New ISAs
- There will still be two types of NISA available – cash and investment – and you can have one of each per year
- You can save up to £15,000 tax free per year
- This can be split in any way you like (or not at all) between your Cash and Investment NISAs
- If you have an ISA it will automatically switch over to being a New ISA
And that, my friends, is that! Perfectly simple and straightforward. One lovely, easy number to remember. And you don’t even have to do anything to your current ISA – it just sort of magically happens at midnight on Monday. Hurrah! Bish bash bosh! Job done! Bob’s yer Uncle! (Unless he’s about to keel over leaving £15K, in which case he’s very much MY uncle.)
I did my research on this on the Scottish Friendly website – they have a brilliant downloadable guide which explains everything really well, and also a short video (below) which talks through the New ISAs. It’s well worth a look if you want to find out more about the New ISA, or in fact about savings and investments in general, in a surprisingly non-stuffy fashion. AND they have a cool timeline thing at the bottom which is kinda fun, even if it does make me feel ancient! And if you do Twitter, they can be found here.
**Disclaimer – this is a sponsored post, written in collaboration with Scottish Friendly**
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Thanks for the reminder about this, good to know! I admit it took me a while to work out the title though.
Jenni recently posted…Get Kids Gardening
I need to sort my Isa out.
Angela Spicer recently posted…How Much?
I have an ISA but the rate has gone down. Thanks for the reminder to check the rate, I will be checking out the Scottish Friendly link now.
mellissa williams recently posted…Degustabox For July
Good to know! I kinda always go past the messages from my bank, I’ll have to have a look at my ISA now 🙂
Joanna Imran recently posted…Hey, I’m ONE!
Thanks for the info – wish I had £15K to put away – maybe one day!
Rollercoaster Mum recently posted…Circus of Thieves and the Raffle of Doom – a children’s book review and Giveaway
I really need to get my head around this stuff better, my savings are sat earning practically nothing at the moment!
Sonya Cisco recently posted…Spider
Now I just need enough money to put into one
Pinkoddy recently posted…Bloggers on Instagram Tips
Ooh that reminds me I need to transfer some of Baby’s money into an ISA x
You Baby Me Mummy recently posted…Word of the Week #24
Sorry, I just let my husband deal with this kind of stuff!
Jenny recently posted…How to make molded eggs for a bento picnic
if only i had money to save 😉
Polly recently posted…52 Weeks of Gratitude – Week Eight
If only I had 15 grand to fill it up! But it is good news that you have the option to invest in just the cash version if you choose to.
VaiChin @Rambling Through Parenthood recently posted…Mint and Yogurt Raita
I find them so hard to work out. Good tips though, thank you!
Globalmouse recently posted…Fancy Becoming a Millionaire?!
It’s a minefield isn’t it? Thanks for the information x x x x
Cass@frugalfamily recently posted…#WhatsForTeaTonight – Tuna Pasta Bake….
I’ve always wanted to set up an ISA as I know it will be a great way to save money without dipping in to it, but the fact you couldn’t draw it all out in cash annoyed me, but pleased it’s now changed so will deffo look into it x
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Julie recently posted…6 Months Blogging | What I’ve learnt about Blogging and Helpful Tips
It would be lovely to have enough money to have one, but thank you for the information, I wasn’t aware they were changing x
Kirsty Hijacked By Twins recently posted…23rd June – 29th June 2014 – One Picture Everyday For One Year
I have an old ISA but really need to change it
Kara recently posted…Britmums Live – My Thoughts
Thank you for the information. I had no idea that they were changing! You have explained it well compared to how the bank usually tells me things like this.
Bek recently posted…A Guide to Some of the Best UK Staycations – Guest Post
Thanks for this – I have an ISA that has barely anything in and we recently sold our static caravan off and need to put the money into savings – will have to look into this
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