From 1 July 2014, all existing ISAs will automatically convert into a New ISA (NISA) and all ISAs that you take out from then will also be following the new rules. If you want to know how you can benefit from the changes and what the differences are, check out the video below that the clever people at Scottish Friendly have put together for you:
If you prefer having all the details black on white, then continue reading here, because these are all the basic facts you shold know about the new ISA:
- old ISAs will automatically be converted
- the overall subscription limit for 2014/15 will be raise to £15.000
- new subscriptions can be split in any proportion between a New Cash ISA, New Stocks and Shares ISA, which gives you more choice over your investment
- any contributions made into an ISA from 6 April this tax year will count against your New ISA limit for 2014/15
- you can transfer a Cash ISA into another Cash ISA or move it to a Stocks and Shares ISA
- from 1 July 2014, the New ISA will also allow you to transfer your savings from New Stocks and Shares ISAs to New Cash ISAs
- My Choice (ISA) accepts ISA transfers and will automatically increase your limit to 15k
- applications can be made online or your local branch
- the value of your investments can rise and fall as well as your payout
- tax matters depend on your personal circumstances
Do you feel informed about the new ISA and do you think it will affect the way you save for the future?
This is a promotional post, but I hope it helps you understand the new regulations a little more. If you have any detailed questions, hop over to Scottish Friendly’s Twitter feed.