Open An ISA For The New Tax Year 2020/21
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
A new tax year is underway, and with it comes a new opportunity to do more with your money. From April 6 2020 until midnight on April 5 2021, you are able to invest up to £20,000 into an ISA
Using up your ISA allowance is a way for you to save or invest tax-efficiently, as you do not pay any Capital Gains Tax or Income Tax on any income generated within an ISA.
Investments left in an ISA will continue to reap tax-free benefits. Investing as much as you can each tax year, and keeping this investment for the long term, could help you to grow your money towards your goals.
Think carefully about the type of ISA you invest in. A Cash ISA is limited to how much growth it can achieve, even more so with interest rates recently cut to record lows. In reality, with inflation, a Cash ISA is going to be worth less than the sum invested, as inflation rates are above interest rates – the prices in the shops are going up quicker than the value of your savings.
A Stocks & Shares ISA is different, your money can grow based on the performance of the funds you are invested in. A True Potential Stocks & Shares ISA is invested in the globally diversified True Potential Portfolios, managed by our in-house Investment Management team with the aim of minimising risk and maximising growth. Over the long term, this helps you to do more with your money.
There are different ways of investing into your ISA. You could invest your £20,000 allowance now in one go giving your money more time to grow, or you could use Pound Cost Averaging, investing a set amount at a regular interval, which can help to average out the price of your investment and ensure you never buy at the highest price. Whatever you choose to do, using as much of your allowance as possible is a tax efficient way to do more with your money. If you don’t use it you lose it.
With True Potential, you can impulseSave® to top up your ISA at any time, and track your investment 24/7 to make sure it is on track with your goal.
Do more with your money this tax year, establish the right investment habits today, to enjoy a better tomorrow. Log in to your True Potential account now.