Saving or investing with an ISA can be a great way of making your money go further. Read on for more information on how to save money with an IG ISA.
Stocks and shares ISAs form a tax-free ‘wrapper’ around any money you invest in them. What that means in practice is that you won’t have to pay any capital gains tax on profits made from selling shares bought within an ISA, or income tax on any dividends received.
There is a yearly limit on how much you can put into an ISA, though. The limit resets at the end of each tax year and covers both stocks and shares ISAs and cash ISAs. If you haven’t used all of your limit at the of the tax year, it won’t roll over.
Stocks and shares ISAs tend to be very easy to open. The IG ISA, for instance, takes just seconds to set up once you have a share dealing account. There are no
opening or yearly admin fees, or IG fees for transferring investments.
Despite being called a stocks and shares ISA, you can use an ISA to invest in more than just stocks and shares. You can also trade buy and sell other markets, such as:
- Corporate and government bonds
- ISA-eligible ETFs (exchange traded funds)
- Unit trusts and other types of funds