With the end of the tax year fast approaching, here’s everything you need to know about investing within a Wellesley ISA…
What is an ISA?
An ISA (Individual Savings Account) is a tax-efficient way to save or invest money. In the UK each year, everyone over the age of 18 is allocated an ISA allowance. This is the sum of money that you are allowed to add to your ISA holding and earn tax-free interest on each year.
What is my ISA allowance?
For the current tax year (2019/2020), the ISA allowance is £20,000. This means you can add a maximum of £20,000 to your ISA holdings. Each year this allowance resets so if you don’t use it before the end of the tax year, you will have missed your opportunity to use it within that year.
When is the ISA deadline?
The ISA deadline is the end of the tax year which this year falls on Sunday 5 April 2020. Wellesley’s current bond closes on Saturday 4 April 2020 at 11.59pm. If you would like to invest with Wellesley this tax year, you must have credited funds to your ISA ahead of the end of the tax year.
What types of ISAs are there?
There are four types of ISAs:
- Cash ISA
- Innovative finance ISA
- Lifetime ISA
- Stocks and shares ISA
You can open multiple ISAs, however, you can only deposit into one of each type of ISA per year. Be sure to check any limitations of each ISA, as some have investing or savings caps.
What type of ISA is a Wellesley ISA?
Wellesley’s ISA is a stocks and shares ISA.
What am I investing in with a Wellesley ISA?
After you’ve opened an ISA with Wellesley, you can select the fixed-term, fixed-rate bond you would like to invest in.
How do I use my ISA allowance with Wellesley?
Firstly, you must open a Wellesley ISA if you haven’t already. If you’re an existing customer, you can do this in seconds by logging into your account here, selecting ‘Add an ISA’ from the top menu and following the on-screen instructions. If you do not have an account with Wellesley yet, simply open your free account here and be sure to select ‘yes’ when asked ‘Would you also like to open an ISA?’.
Do I have to allocate my full allowance with Wellesley?
No. You can deposit as much or as little of your allowance as you like. However, if you do invest with Wellesley, remember that you can only invest in one from each type of ISA per year. If you invest in a Wellesley ISA – no matter how much you deposit – you have allocated, your stock and shares ISA allowance and cannot invest in any other stock and shares ISA in that tax year.
If you do invest your full £20,000 ISA allowance this tax year (2019 / 2020) in Series 56 of The Wellesley Property Bond, you are eligible for our ISA Bonus offer and will receive a bonus £1,000 investment into Series 55 of The Wellesley Property Bond. Find out more here. Terms apply.
If you have any further questions about the Wellesley ISA, please do not hesitate to contact us.