If you’re thinking about investing in an ISA for the first time, or considering investing again, here are my quick answers to the top 5 ISA questions I often receive.
1. When can I invest in an ISA?
You can invest in an ISA at any time, but 5 April is a key date in your ISA diary. This date marks the end of the tax year, and the final date for you to use your ISA annual allowance. From 6 April, your annual allowance is reset. Any unused annual allowance from the previous tax year cannot be carried forward to the next. So, use it in the current tax year, or lose it.
2. How much can I invest in an ISA?
You can currently invest up to £20,000 in an adult ISA in each tax year. This investment can be split between a stock and shares ISA and a cash ISA, as you wish – up to the £20,000 ceiling. And with Wealthify at Aviva, you can begin with as little as £1.
3. Do I need to invest all at once?
No. With most ISAs, you can choose how much and when to invest your money. Some people choose to invest all at once; some choose to invest at regular intervals (maybe monthly); and some choose to invest as and when they can.
4. Can I get my money if I need it?
Yes. You are free to access your ISA money whenever you want although with an investment ISA you should look to invest your money for the medium to long term, usually a minimum of 5 years. As with all investments the value can go down as well as up and you could get back less than you invested.
5. Can I consolidate my ISAs in one place?
Yes. If you’ve built up several ISAs in different places, you can bring them together if you want. Many choose to do this to make the management of their ISA investments easier. Before doing so, it’s sensible to look at the differences between your ISA products. The charges and investment options may differ between products, for example. So, always consider what you may be gaining, and losing, if you choose to consolidate your ISAs.
Recent data suggests we can expect about 10 million people to invest in ISAs in the coming tax yeari. That’s 10 million people investing for their future, and 10 million people taking advantage of the tax benefits of ISAs. Why not join them?