July 29, 2014

New ISA (NISA) Explained

The New ISA or NISA will allow you to save up to £15,000 in a universal ISA pot from July 1st 2014. Unlike previous ISAs there will be no limit on how much out of the yearly allowance that you can save in a cash.

So with a New ISA, you could save up to £15,000 in cash only if you preferred to unlike previous ISAs. Quite simply, you can chose to divide up your investments held within an New ISA as you like. This could mean all in cash, all in funds and shares or a mixture of any proportion between cash and fund and shares, to the total of £15,000.

Between 6th April and 1 July 2014, the ‘old’ ISA will still apply with a limit of £11,880 and of this you will be allowed to save a maximum of £5,940 into a cash ISA or the full amount into a Stocks & Shares ISA.

The New ISA limit will be reviewed every year on as is the case with the ‘old’ ISAs. All in all, the new ISA will all you to invest more in the type of asset classes you want.