The value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply. Tax reliefs referred to are those applied under current legislation, which may change. The availability and value of any tax relief will depend on your individual circumstances.
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What is a Stocks and Shares ISA?
A Stocks and Shares ISA (Individual savings account), is an easy way to get investing for the future. The main difference between an ISA and any other savings account is that they offer a way to save tax-efficiently, meaning you don’t need to pay UK Income Tax or Capital Gains Tax on the growth.
There is a limit to how much money you can put into an ISA in each tax year, which is called the 'ISA allowance'. The ISA allowance for the current tax year is £20,000.
When investing in a Stocks and Shares ISA with NatWest Invest, the experienced investment managers at Coutts do the day-to-day work for you. There are five ready-made funds for you to choose from, depending on your attitude to risk. You should expect to invest for five years plus but you can take your money out at any time.
Investing does come with additional risks - there’s always the chance your investments will lose value and you could get back less than you initially put in. To make the most of investing, it is important to have a long-term view of your portfolio.
Other types of ISA we offer
Aside from Stocks and Shares ISAs, there is the option to hold a Cash ISA, including a Fixed Rate Cash ISA. Cash ISAs are a simple savings account that allows for instant access to your funds, whereas with Fixed Rate Cash ISAs the money is locked away, normally for 1 or 2 years. Interest rates on cash savings whether instant access or fixed rate can be lower and thus a Stocks and Shares ISA offers the potential for higher return over the longer term.
You can find out more information on Cash ISAs and Fixed Rated Cash ISAs here.
Benefits of having an ISA
Whatever your savings goals, having an ISA could be a good idea. They offer a flexible way to save and plan your finances in the short and longer term.
Paying into an ISA is known as subscribing. You can subscribe to one of each type of ISA in a tax year, providing that you don’t subscribe more than your ISA allowance across all of them. The current tax year runs from 6th April to 5th April. Your allowance for this year is £20,000.
Your ISA allowance applies to you as an individual. Being married or living with your partner, for example, won’t affect your allowance.