So, what is it exactly? An ISA is a type of account for holding cash and investments, and one of the most popular accounts for UK tax payers, as you do not have to pay any UK income tax or UK capital gains tax on the growth. At Wealthsimple we will choose the investments for you.
What are the pros? Like we said, no tax on the growth.
If you have an existing ISA you can transfer it into your Wealthsimple ISA easily and free of charge.
If you need to access your funds you can at any time with the proceeds from the sale of your investments arriving into your account within 5 days.
Is there anything to be careful about? You have to be a UK tax payer of 18 years of age and not have taken out an ISA this year. You can only invest up to the annual limit set by the government each year. This year it’s £20,000.
If you are looking to save for your pension or a house purchase it would be wise to check if other accounts may be more suitable, such as a pension product or Help-to-Buy ISA.
Otherwise this is where most investors should start.