Managing Your Money 

Don't overlook the flexible benefits of Isas

Don't overlook the flexible benefits of Isas

You can invest up to £20,000 a year in individual savings accounts (Isas), and up to £40,000 tax-free into pensions (subject to scaling down for the highest earners). But these tax wrappers work differently to each other, meaning that there are times and situations when one can work better than the other. In general, longer-term investors paying higher rates of income tax favour pensions because they can get tax relief of 40 or 45 per cent on their contributions. But Isas are subject to fewer rules on how and when you can withdraw money from them.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now