Which ISA is best? That is the topic of today's episode.
First, we cover exactly what an ISA - or Individual Savings Account - is and break down how each of the 4 different types of adult ISAs actually work.
We then move into which ISAs are likely to be best to prioritise in certain situations.
Overall, and everyone's situation will be slightly different, Stocks & Shares ISA will give you the most 'profit' (most likely). This is because over the long term the gains and dividends can exponentially grow your wealth.
However, Lifetime ISAs (specifically Cash LISAs) are a fantastic vehicle to save for your first house deposit. And Cash ISAs can be useful in some specific scenarios, like if you will breach your personal savings allowance and have to be some tax on your savings interest.
Listen to the episode for the full details.
Timestamps:
0:34 - What is an ISA?
3:46 - Cash ISA
5:58 - Stocks & Shares ISA
7:37 - Innovative Finance ISA
8:26 - Lifetime ISA
13:06 - Why I don’t like S&S LISAs
17:19 - Which ISA to prioritise in specific situations?
20:25 - ISA allowance
21:21 - Which ISA is best
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⚠️ Disclaimers: I am not a financial advisor and this does not represent financial advice, it is for entertainment purposes only. Please seek professional advice to get the best information for your personal situation. When investing, your capital is at risk and you may get back less than invested. Past performance does not guarantee future results.
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