If you already have an Investment ISA, a Cash ISA or an Innovative Finance ISA from a previous tax year, you can carry on saving and investing in it, or if you would like to go to another provider, like us, you can simply transfer it into one of our Investment ISAs.
Remember, as with all investing, stock market investments can go down as well as up so you might get back less than you've paid in.
Each year you can split your total allowance in any way you like between a Cash ISA, an Investment ISA and an Innovative Finance ISA, and use up to £4,000 of the limit in a Lifetime ISA. However you can only contribute to one provider per ISA each year e.g. you pay £30 into a Cash ISA with Bank A, and £30 into an Investment ISA with Scottish Friendly. You can’t carry any of your annual ISA allowance forward into the next tax year so, if you haven’t used your full allowance by the 5th April, you simply lose it.
What are my options for the investments I have in previous tax years?
If you have ISAs that you no longer contribute to, there are a couple of options for you to choose from;
You could leave it where it is, but you might want to check the market on a regular basis in case you could get a better deal elsewhere.
You can transfer your contributions made in previous tax years to another provider and from a Cash ISA to an Investment ISA or an Innovative Finance ISA and vice versa.
If you have a Lifetime ISA, the options are slightly different;
You can transfer your contributions to another Lifetime ISA provider.
You can transfer your contributions to a different ISA, but if you do so before the age of 60 you'll have to pay a 25% withdrawal fee.
Before you do anything, it could be a good idea to check with your providers for any restrictions they may have on transferring ISAs. They may also make you pay a charge.
What about Junior ISAs?
There are just two types of Junior ISA: a Cash ISA and a Stocks and Shares ISA (also known as an Investment ISA), and the child can have one of each in each tax year.
The current Junior ISA limit is £4,368 a year, and that can be split any way you like between both types of Junior ISA.
The money belongs to the child and can only be accessed by them when they turn 18. But you're not tied into one account and provider - you can transfer the fund to a new Junior ISA year-on-year.
Scottish Friendly doesn't provide advice. The information provided should help you decide if an ISA or Junior ISA is suitable for you or your child. If you're not sure whether an ISA or Junior ISA is suitable, you should contact an independent financial adviser for advice. Advisers may charge for providing such advice and should confirm any cost beforehand.
Making investing open to everyone
Investment ISAs put your money to work using the long-term growth potential of the stock market. At Scottish Friendly, our Investment ISAs start from an affordable £10 a month.