This is a list of helpful facts about ISAs in 2022.
Around 13 million Adult ISA accounts were opened between 2019 and 2020, making them hugely popular with UK savvy savers.
So, if you want to find out a little more about ISAs today, let’s begin.
1. ‘ISA’ stands for ‘Individual Savings Account’
The key benefit of ISAs is that they allow you to save tax-free into a cash savings or investment account. In 2022, you can save up to £20,000 per year through an ISA or split the allowance across some or all of the other types.
The annual ISA allowance for each tax year is set by the Government and can change from one year to another. ISAs are provided by banks, building societies, insurers, asset managers and National Savings and Investments.
2. The annual ISA allowance will stay at £20,000 for the next tax year
The annual ISA limit has been £20,000 since 2017/18, and it will not change until at least the end of the next tax year (2022/23).
3. There are 4 different types of adult ISAs
You can choose between four different types of ISAs, and you can split your annual allowance between them.
Here are the 4 different ISA types:
4. You can switch between providers without losing your ISA status
You are allowed to transfer a Cash ISA to another Cash ISA provider or to a Stocks and Shares ISA. You can also transfer a Stocks and Shares ISA to another Stocks and Shares ISA provider or transfer a Stocks and Shares ISA to a Cash ISA.
5. ISAs can affect your entitlement to benefits
Funds held within any type of ISA count as savings will almost certainly affect any benefit payments you might be entitled to. This is the same with all forms of savings.
6. The Financial Services Compensation Scheme (FSCS) protects Cash ISAs just like any other type of account included in the scheme
Currently, under the FSCS, if your ISA provider goes out of business, your savings are protected to a maximum of £85,000 per provider (£170,000 for joint ISAs). Deposits protected by the FSCS will usually be returned to you within seven days.
7. There is genuinely such a thing as the ISA season!
ISA season takes place during March and April, when one tax year ends and the next one begins. This is a popular time to open a new ISA account with savers taking advantage of their ISA allowance for the current tax year before they lose it and setting up their ISA for the new tax year as soon as they can. It is the busiest time of year for ISA providers.
To find out more about our ISA accounts for individuals, transferring an existing ISA from another provider, or using your ISA allowance for the year, please visit our website’s dedicated ISA Savings Accounts section.
Although this email and article may contain helpful information and tips, these are not personal advice. You may wish to seek advice from a financial advisor if you are unsure what’s best for your own personal circumstances.