Budgeting and saving are important for us, we’re saving for immediate things like a holiday, garden improvements as well as for the future with University funds and helping J and T with deposits on their homes in years to home. As such we use ISA’s but these are about to change. Earlier in the year the chancellor announced that from the 1st July 2014 the New ISA’s will replace the existing ISA’s. So what does this mean to you and us.
NISA’s in a Nut Shell
The New ISA’s or NISA’s will replace the existing ISA’s as of 1st July 2014 – what makes them different
The Saving Limit has increased
With the old ISA’s you were able to save up to £11,880 a year in a combination of Cash ISA and Shares ISA – from 1st July 2014 the limit increases to £15,000.
Where you can save
With the old ISA’s you were only able to place £5,940 of the maximum into a Cash ISA – from 1st July 2014 with the NISA you can split the money between the Cash and Share NISA’s however you would like including putting all into a Cash NISA.
What happens to your old ISA
If like us you have an existing ISA then on 1st July this is automatically changed to a NISA – so if it’s a cash ISA then your limit changes in what you can invest instead of having an upper limit of £5,940 there is a limit of up to £15,000 depending on whether or not you invest in a Share ISA.
Already opened an ISA since 1st April?
Then you can’t open a new ISA – but that ISA changes to a NISA with the increased limits as of 1st July.
Find out more about the NISA’s
If you want to find out more information that check out the NISA information from Scottish Friendly which includes a fantastic video explaining all the changes in more detail or tweet them to ask questions in general about the changes.
This information is brought to you by Scottish Friendly – explaining NISA’s in plain English.