ISAs

ISAs from Norwich Union

Because of their tax-efficient benefits, ISAs (Individual Savings Accounts) are considered a ‘must have’ by many savers looking to make the most of their money. By choosing a Norwich Union ISA, you can relax in the knowledge that your money is in good hands. Norwich Union is one of the most trusted names in financial services and is part of the Aviva group, which manages assets worth £364 billion worldwide.

What is an ISA?

Under current tax rules, an ISA enables you to invest money and receive any income earned from the investment free from income tax. Plus, you won’t have to worry about paying UK capital gains tax on any growth in value.

Until April 2008, there were Mini and Maxi ISAs but these no longer exist. Instead, there are now just Cash ISAs and Stocks and Shares ISAs. Every adult in the UK currently has an annual ISA investment allowance of £7,200. Up to £3,600 of that allowance can be saved in a Cash ISA with one provider, or you can choose to invest the remainder, up to the full allowance, in a Stocks and Shares ISA. Remember, these rules may change in the future.

What’s the difference between a Stocks and Shares ISA and a Cash ISA?

• Stocks and Shares ISAs enable you to invest in individual company shares or funds that invest in stocks and shares. These are usually higher risk/return funds aiming to provide long-term capital growth, income or a mix of both.
• Cash ISAs enable you to save in deposits and/or interest-bearing accounts or cash funds, which are of a lower risk/return nature.

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