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Saturday, 22 November 2014

What are the ISA rules when it comes to how much I can put in?

Advertising feature. There have been a number of changes to the ISA rules, effective from April 2010, that will impact what people can put into their ISAs. These alterations may have caused confusion for some, particularly if they were looking forward to opening such an investment facility at the start of the new tax year.

Basically, an ISA - or Individual Savings Account - is an account where consumers can invest their money in an attempt to maximise the way in which it works for them. Of course, the performance of the product can depend on a number of factors, including market performance, economic conditions and fluctuations in the Bank of England's base rate of interest. But for those looking to be a little more adventurous with their money, a stocks and shares ISA could be an interesting way to start investing. Please note that as with any stock market based investment while you enjoy the potential for good returns the value can go up and down and you may get back less than originally invested.

Prior to April 2010, the ISA annual allowance was set at £7,200 for all eligible ISA investors under the age of 50, with a £3,600 limit in place for a cash ISA and the remaining amount up to £7,200 overall available for a stocks and shares-based option. Those looking to take full advantage of the investment option also had the choice of putting the whole figure into a stocks and shares ISA - and it seems many were happy to do so.

But last year, the Treasury announced that this limit would be raised over two dates. From October 2009, people who are aged 50 or over on 5th April 2010 could invest up to £10,200 - with the cash ISA allowance set at £5,100. The good news is that from April 6th 2010 this change will apply to all eligible ISA investors, aged 18 or over – with cash ISAs also an option for young savers aged 16 or over.

For this reason, many savers may be looking to start their their ISA when the new tax year begins. People can choose options to suit their financial needs. If you are interested in taking on the market, the Halifax ISA Investor - Stakeholder Option may be an easy, tax-efficient way to get your investment portfolio off the ground.

Provided by HBOS Investment Fund Managers Limited, an investor will get the opportunity to put part or all of their ISA allowance into the Cautious Managed Fund. This option, which meets all Government Stakeholder rules, can be started with a lump sum of £20, with regular payment requirements set at the same figure. If you have yet to decide which is best for you, the bank also provides an ISA guide that might help.

Halifax offers a complete range of bank accounts and personal investment products. Whatever you're looking for: from personal loans, a mortgage or a credit card, at Halifax we aim to give you a little extra help. We even offer help with your home insurance and travel insurance too.

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