In the past, most bank ISAs were a great way to add some cash and let it sit for a few years, before stopping in to see how much profit was made via interest. These days however, there are a variety of alternative options making it even easier to place your hard-earned assets into a savings account and then watch your profits skyrocket – leaving you with a comfortable little nest egg for the future.
What is an ISA?
Traditionally speaking, ISA is the abbreviation of an Individual Savings Account. When talking about trading however, this terminology can differ in the sense that investors will typically want to pursue a Stocks and Shares ISA. Where regular ISAs are for cash only, allowing people to input up to a certain amount in their local currency, S&S ISAs are different, because they allow stocks and shares to be used as a commodity or asset.
How is This Different?
Stocks and shares don’t have a defined value – they fluctuate. Using them as a form of currency can be a great way to fill up a dedicated ISA and then reap the rewards in the future. Many investors use them to enhance their investment goals and with the ability to store up to £20,000 initially, this could provide a huge return on investment (ROI) in the future. Already this is noticeably different than a traditional ISA, which will usually set a cap of around the £5000 mark each year, taking longer to accumulate a large sum and lacking the valuable appeal of stocks and shares.
What Are the Benefits of a S&S ISA?
This will depend on which online platform you choose to go with, but if we use Fineco as an example, when signing up before the end of April, you’ll have up to 3 months from the end of the month to transfer shares, commodities and stocks to your new account. Once confirmed, they will then be safely stored and subjected to an incredibly appealing ability to enjoy zero percent ISA fees, as well as interest received that is not eligible to be taxed within the UK.
If you’re unsure of what that means – it translates to the option to avoid traditional fees associated with signing up for an ISA and the potential to receive every penny of your interest without having to declare it as taxable income. This is one of the reasons why people opt for ISAs in general and even more so for those that make stocks and shares a viable investment for these types of accounts.
Imagine being able to enjoy a small fortune in your future – and one that could top off your trading goals and be put to good use right when you need it. Stocks and Shares ISAs are flexible, typically straightforward enough to sign up to and can be used as an additional source of income that you don’t need to use immediately, but will have access to in the future; when the value of your investment has increased substantially. Many traders have their own S&S ISAs and for good reason – they are a unique option not available to other markets, they are a great way to secure stocks and shares for the future and they are simply perfect for increasing profits well into the future.
