July brings the NISA and the banks are ready
As informed in our post 2014 budget article
, this year welcomes the “N”ew “ISA” and from 1 July 14 all ISA accounts now operate under NISA (nicer!) terms.
What is a NISA?
A recap on benefits include:
- An increased annual limit of £15,000 (currently £11,520)
- 100% can now be held as cash investment (currently only 50% – £5,940)
- Transfers can be made between Cash and Stocks and Shares NISA’s (currently transfers are one way from Cash to Stocks only)
- Interest, dividends and capital gains from a Stocks and Shares NISA is tax free
As this is all good news and there is expected to be increased interest from savers wanting to make use of the more flexible terms the NISA offers.
Are the banks ready for this change?
Following concerns that banks and building societies would not be ready for any such surge, a representative from the British Bankers Association (BBA), on behalf of all major banks suggests, “the banks are ready!”
If customers want to transfer their products to a cash investment, or vice versa, then their teams have been actively trained and systems are in place to deal with enquiries.
Need to speak to a specialist financial advisor about ISA’s? We can help connect you.
Call us on: 020 7376 9333