ISAs Explained
What is an ISA?
An Individual Savings Account (ISA) is a flexible, tax-efficient way to save or invest.
How the tax works
With an ISA, any growth on your investments is not subject to any income tax or capital gains tax, so you can really make more of your investments.
ISA investment options
You can hold a range of different investments or savings within an ISA, and there are limits to the amount you can save or invest in any one tax year.
How much can I invest?
In the current tax year you can either invest your entire allowance, currently £10,200, in a Stocks & Shares ISA. Or, you could invest some in a Cash ISA, which is a deposit based account, with the remainder in a Stocks & Shares ISA. The maximum that you can invest in a Cash ISA is £5,100, so if you do this, you can only invest £5,100 in a Stocks & Shares ISA.
You can use the same or a different provider for both ISAs.
Stocks & Shares ISA
Range of funds
Nationwide offers a range of investment funds from a range of fund managers for you to choose from, most of which are available as a tax efficient ISA. You can invest in just one, or spread your investment across a range of funds. If you want to invest more than the current ISA limit, you can hold Unit Trusts/Open Ended Investment Companies (OEICs) in an investment fund.
The chart below summarises your investment options and amounts:
Tax treatment is dependant on individual circumstances. The tax information provided is based on our current understanding of current law and HM Revenue & Customs practice which can change.