New ISA NISA Explained

TranscriptIsa’s an individual savings account, this video explains individual savings accounts and what I am going to do is give you a little bit of history and then move on to explaining the current rules for Isa’s, the long and the short then, the conservative government way way back in the eighties they launched the personal equity plan, a tax efficient savings plan, you can save lump sums, you can save regular premiums, they also had something called a Tessa do you remember Tessa’s, tax exempt special savings account, so what you had was a stocks and shares Isa sorry stocks and shares personal equity plan and then you had the Tessa which was a tax efficient bank account labour came into power and launched the ISA the ISA you had a cash Isa or a stocks and shares Isa, cash Isa to replace the Tessa stocks shares Isa to replace the personal equity plan, so we had the old rules you had a, you could have a maxi Isa which was all stocks and shares using all of your allowances or alternatively you could have two mini Isa’s a mini cash Isa and a mini stocks and shares Isa and that’s how it was until 2014, where under the new, well say the new now we’ve had them for a few years, but under the coalition government they have created the NISA the new Isa, allowances went up to £15,000.00 from August 2014 and basically it was, you can have any combination of cash or stocks and shares in a new individual savings account a NISA a new Isa, so that’s where we stand at the moment, Isa’s are taxed privileged investments no tax is paid if its cash based on your interest that you receive or stocks and shares Isa’s they grow capital gains tax free, there’s a slight tax credit deduction on dividends for stock and shares but broadly speaking you receive all of your benefits err all of the proceeds tax free and then what we also have is a separate Isa for children called the JISA or the Jeesa the Junior Isa which I’ll cover in a separate vide, but for adults we have the new Isa the NISA where you have one total combined yearly allowance, none, gone of those mini stocks and shares and mini cash Isa’s and things like that, it’s just one total Isa allowance where you can invest in any combination you want, cash stocks and shares all in one, all in the other a mix of both as you see fit, erm, with Isa’s all as I would suggest is be careful from a charging perspective because errr when it comes to interest rates on cash Isa accounts or new Isa cash, then pretty much loss of banks and building society’s give you a headline rate and then all of a sudden gradually it starts to come down as far as stocks and shares element of the NISA just be aware that management charges can vary significantly between Isa groups and what I would do is particularly if you’re looking at stocks and shares based Isa investments get advice from us because what we’ll do is charge you a set fee to set up your Isa and what we can then do is keep it very very clean where there are no hidden trail commissions or fees paid to advisers and we target the best value for money Isa that you can get for your money, so what is an Isa and individual savings account it’s got lots of tax benefits, it’s now called the NISA the new Isa, thanks very much for watching.