An ISA (Individual Savings Account) is simply a tax-efficient way to save or invest.
The best way to think of an ISA is as a tax ‘wrapper’ – the wrapper protects your money and you aren’t charged tax on the interest you earn*, offering greater growth potential.
For each tax year, there is a limit to the amount you can invest in an ISA – the 2016/17 tax year allowance is £15,240, and can be invested in any combination of stocks and shares and/or cash.
The Cash Park option in our ISA enables you to hold all or a proportion of your £15,240 allowance in cash. This means you can shelter your money in cash if you are concerned about the market’s prospects, then move to investments when you believe they have more potential. What’s more, it’s quick and easy to move between the two. The Cash Park has the potential to earn a variable rate of interest. Interest, where payable, is accrued daily and is paid monthly. For information on the latest interest rate, please visit our ISA Cash Park page.
The value of investments can go down as well as up and you may not get back the amount invested. The value of tax savings and eligibility to invest in an ISA depend on personal circumstances. All tax rules may change in future.
If you have any questions, please call our UK-based team.
Monday to Friday, 8am to 6pm,
Saturday 9am to 6pm.
Please be aware that Fidelity Personal Investing does not give advice. If you are unsure of the suitability of an investment, please contact an authorised financial adviser.