FAQ About Individual Savings Accounts
The amount of money an ISA could save for you depends on a number of factors, including the type of ISA you choose, your contribution amount, and the returns you earn on your investments.
Here are a few examples of how much money an ISA could save for you:
Cash ISA: If you contribute the full £20,000 allowance to a Cash ISA with an interest rate of 1.5%, you could earn approximately £300 in tax-free interest in one year.
Stocks and Shares ISA: If you contribute the full £20,000 allowance to a Stocks and Shares ISA and earn an average return of 6% over a period of 10 years, your investment could be worth approximately £34,430 at the end of the period, assuming all returns are reinvested.
Lifetime ISA: If you contribute the maximum £4,000 allowance to a Lifetime ISA each year and earn the maximum government bonus of 25% on contributions, you could earn up to £1,000 in government bonuses each year, up to a maximum of £32,000 over a period of 32 years.
It's important to remember that these examples are hypothetical and that actual returns may vary based on market conditions and other factors. Additionally, it's important to carefully consider your individual financial goals and circumstances before investing in an ISA.