ISAs

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19. Conclusion

• ISAs are 'wrappers' which shelter investments from income tax and capital gains tax.
• The investments you can put in ISAs are: Stocks and Shares and Cash.
• There are strict limits on the amounts you can invest in each of these components, and the amounts vary according to whether you've taken out a maxi ISA or mini ISAs.
• You cannot open a mini ISA and a maxi ISA in the same year. If you want to invest more than £3,600 (or £5,100 from Oct 09 if over 50, April 2010 otherwise) in the Stocks and Shares component, don't take out any of the mini ISAs - you must open a maxi.
• When choosing funds to put in ISAs, give proper thought to the aim of the fund, its risk profile, and the track record of the managers. If you need advice, contact an IFA.
• Pay attention to charges, but don't make the mistake of assuming that the fund with the lowest charges is the best one for you.
• The usual investment caveats apply: to get high returns you have to take increased risks; ISA values can go down as well as up; past performance is not necessarily a guide to the future.

You have now completed the course. To test your knowledge, take the Assessment test.

1. What is an ISA? 2. Who can take out an ISA? 3. ISA investments: the 'Components' 4. The different kinds of ISA: Maxi, Mini and Tessa-only 5. How many ISAs can you have? 6. How much can you put in an ISA? 7. Maxi or Mini? 8. Tax rules on ISAs 9. Practical significance of ISA tax rules 10. Cash ISAs 11. Stocks & Shares ISAs 12. Choosing an ISA fund 13. Buying an ISA 14. Charges and CAT standards 15. Where to find an IFA 16. Switching ISA investments 17. Transferring shares into an ISA 18. Withdrawing funds from an ISA 19. Conclusion

• Fear and Loathing in My Bank Account