If you keep a close eye on the future, you’re the sort of careful person who appreciates the value of saving. Having an Individual Savings Account (ISA) is an important part of many people’s savings strategy.
Each tax year, the Government sets an annual ISA subscription limit, part of which can be saved in a cash ISA and the remainder in a stocks and shares ISA. Alternatively, you can invest the whole amount in a stocks and shares ISA.
From 6 April 2011, the annual ISA allowance is £10,680 for all customers.
The following table explains your options for investing in a cash or a stocks and shares ISA.
| Open and run one cash ISA each tax year | Open and run one stocks and shares ISA each tax year |
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From 6 April 2011, you’ll be able to save up to £5,340 of your £10,680 total annual ISA allowance in a cash ISA during the current tax year. To be invested with a single provider only. |
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To get the most benefit from your ISA allowance you should pay in the maximum amount on the first working day of the new tax year and then not make any withdrawals in that year.
C&G Savings offers you a choice of cash ISAs. You can also save in our Fixed-Rate ISA, which gives you the security of knowing how much interest your savings will earn for a set period.
For the interest paid on your C&G Cash ISA or C&G Fixed-Rate ISA to be exempt from income tax, your account must be operated within the rules laid down by the Government, all of which are shown in the C&G Cash ISA and C&G Fixed-Rate ISA terms and conditions. Please note that the favourable tax treatment may not be maintained if any of the rules are broken, a change to your circumstances means that you no longer qualify for an ISA, or the Government alters the rules of the ISA scheme or withdraws it altogether.
