Following the Treasury's Sandler Review for a full suite of low cost financial services products. The Government have announced that they intend to simplify Individual Savings Accounts by allowing people to invest up to £7,000 in a Life Insurance ISA.
Currently you can invest the following in each tax year
1) Up to £7,000 in ONE company's MAXI ISA each year (that includes a range of different types of funds etc) OR
2) You can invest £3,000 in one MINI Stocks & Shares ISA plus £3,000 in one MINI Cash ISA and £1,000 in one MINI Life Insurance ISA each year.
Our View
The change is welcome and presents opportunities for obtaining lower charged life insurance funds rather than some higher charged Unit Trust, OEIC or Investment Trusts. Competition is always good and can only mean better priced investment plans for the investor.
Learn more about ISAs in the Savings Adviser.com. There is even an 10 stage guide to Choosing Your ISA.
Search the Compare & Buy Section for an ISA to suit you.
Search the news archive for more on simplified products and the Sandler Review.