EVERY UK Adult Needs This Investing Account

There are many different ISAs (Individual Savings Accounts) available to UK residents that offer a variety of different benefits and savings strategies.

However, in my years of experience, no other account comes close in performance and benefits to the Stocks & Shares ISA.

Despite this, less than 5% of UK adults have a Stocks & Shares ISA, which is an alarming statistic, showing that the vast majority of UK adults aren’t taking advantage of this fantastic scheme.

So, I’m going to take you through what exactly it is, and why you need one.

What is A Stocks & Shares ISA?

A Stocks & Shares ISA, also known as an Investment ISA, is a tax advantaged savings account available to all UK residents over the age of 18.

It enables you to invest in a wide range of asset classes, like:

• Stocks

• ETFs

• REITs

• Bonds

And more, as well as keeping cash which will receive interest.

With a S & S ISA, you’re able to invest up to £20,000 each year, with zero tax implications, meaning that any:

• Profit

• Dividends

• Interest

Received from your investments, assuming you’ve stayed under the £20,000 annual threshold, is tax free.

Tax free? Yes, that’s right. Tax free.

In other general investment accounts, making a profit on your investments means you’re obliged to pay capital gains tax.

This, barring a small personal allowance, is a 10 or 20% tax on any realised profit that you make in the tax year, depending on your income bracket.

With a S & S ISA, you haven’t got to worry about this at all, and can deposit and withdraw as much or as little as you want, within the £20k threshold.

Key Benefits

Tax Free Investment Returns

Like I mentioned above, you’re able to invest up to £20,000 per year, tax free.

Firstly, this is a huge amount of money.

If you plan on even coming close to this threshold, you’re clearly doing well for yourself.

Regardless of this, it’s something that anyone can take advantage of, even if you only plan to invest a small amount.

With a S & S ISA, you’ll never have to worry about paying tax on your returns.

Withdraw Whenever

There are a few savings accounts in the UK which require you to lock in your money for an extended period of time, and won’t let you withdraw the money until a certain date.

A state pension is one example.

Another is a Lifetime ISA (LISA) which only let’s you withdraw your money when you go to buy a house.

But, you don’t have this problem with a S & S ISA, and can deposit and withdraw as much or as little as you want, whenever you want.

As long as you stay under that £20k annual threshold, you’re good to do whatever you want.

Range of Investments

Many ISAs are limited with what they offer you in terms of savings and investment options.

Whilst a S & S ISA doesn’t give you a complete free reign of the stock market, it gives you a great range of investments to grow your wealth in.

Whether you prefer to invest into:

• Broad ETFs

• Dividend Stocks

• Commodities

• Growth Stocks

Or even just cash, you’re covered.

Where to Start

I’m not being paid to say this but I always recommend people to the same place when starting to invest with a S & S ISA…

Trading212.

• Low fees.

• Easy to use.

• Dummy accounts to practice on.

• Wide range of investments.

• Friendly UI.

I can carry on. It’s where I started, and it’s where I recommend others to start too.

You can open up an account with as little as a:

• Smartphone.

• Identification.

• A small amount of money to deposit.

And you can have a S & S ISA open within a matter of days.

Once you’ve been accepted, you’re free to invest tax-free.

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