Diffrent Types Of Savings And Investment Features Flashcards
1
Q
Individual savings account ISAs
A
a savings account where as your money grows you don’t pay tax on the interest you earn. - advantages - Tax-free withdrawals: You can withdraw funds from both cash and investment ISAs without incurring a penalty (unless you have a fixed-rate account).
Wide investment choices: ISAs offer a range of investment choices.
Transferrable: …
No wrapper charges: …
No age upper limits: …
Inheritance:
Disadvantages -
Depending on the ISA account you choose, you may have to commit to locking away your cash for a set amount of time. The interest rates on ISAs can be variable, potentially offering lower returns compared to other savings accounts.
