New Individual Savings Accounts - NISA

A New Individual Savings Account or NISA is one of the most popular and accessible ways for individuals to save as it offers tax benefits, with easy access to your money.


NISA replaced Individual Savings Accounts or ISA on 1st July 2014.


A NISA is not actually an investment in itself, but a means of sheltering your savings from the taxman. The money you put into your NISA is invested elswhere, so think of an NISA as a 'wrapper' in which you shelter your savings and investments from paying tax.


There are two main types of NISA, a Cash element and a Stocks & Shares element, and subject to a limit of £15240, you can have any combination of both in any one tax year.




Any UK resident aged 16 or over can invest  money into the cash element of the NISA, and pay no tax on the interest. The limit for tax year (2015/2016)  is £15240.


Cash ISAs are best designed for short term savings, they usually have no investment risk, so the main objective is finding who is paying the best interest rates. Fixed term Cash NISAs usually offer more competitive rates, but you will be tieing up your money for a fixed period of time. (Usually between 6 months to 4 years)


Stocks & Shares NISA


It is worth considering a Stocks & Shares NISA if you are looking to invest over the longer term (5 years +), as they do provide an opportunity to achieve real growth, that is a return above the inflation rate, in a tax friendly enviroment.


This type of NISA differs from cash as it lets you put your money into a range of investments, such as Unit Trusts, Open Ended Investment Companies (OEICs), Investment Trusts and individual company shares, as well as Government and Corporate Bonds. This means your investments can go down in value as well as up.


Your investment can grow virtually tax free, with no income tax paid on interest and no Capital Gains tax.


Stocks & Shares NISAs are avialable to anyone who is permanently resident in the UK, and is over the age of 18. 

Can I transfer my old ISA to a NISA

Your previous years ISAs can now be transferred into Cash and Stocks and Shares NISA as often as you want, and now for the first time, money can also be tranferred from stocks and shares accounts into cash accounts.


Tel:   07711 005774

Fax: 0191 5006767


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