Never understood it

scbl

I would love to start an ISA but have no idea how to do so and what benefits I get from this. Where is the best place to open an ISA where I'm getting the most out of it? How much realistically can be made from it for the future? 

Caz3121

depends if you are talking about a stocks and shares ISA or a cash ISA. The main benefit is that you could invest £20k per annum into an ISA and the interest was tax free....looks like soon to be changed

slinger2

A Cash ISA is simply a savings account (with a few extra rules) on which you don't pay any income tax on the interest. Many savers don't pay tax on the interest anyway (basic rate taxpayers can get £1,000 in interest each tax year without paying any tax), so for them there may be no advantage in having their savings in ISAs.

A Stocks and Shares ISA is similarly an account where you can buy and sell stocks and shares and not pay any tax. In this case it's more likely to be Capital Gains Tax etc. that you'll be avoiding.

Keep_pedalling

For most people cash ISAs have been fairly pointless for many years as you get a lower interest rate than you do was non ISA. So unless you are a higher rate tax payer I would not bother. S&S ISAs on the other hand should be considered although paying in to a pension may be the better option if you don’t need the money before your late 50’s 

MSE_ForumTeam5

This MSE guide might be worth a look
 https://www.moneysavingexpert.com/savings/isa-guide-savings-without-tax/

wmb194

scbl said:

I would love to start an ISA but have no idea how to do so and what benefits I get from this. Where is the best place to open an ISA where I'm getting the most out of it? How much realistically can be made from it for the future? 

It’s essentially a tax free wrapper in which you can deposit up to £20k per tax year.

For me the most underrated feature is the complete lack of record keeping Isas require. This is particularly beneficial with S&S Isas so e.g., you don't have to keep track of capital gains, dividends, interest, the bed and breakfasting rules and you'll never have to declare any of these in your tax return.

https://moneyfactscompare.co.uk/savings-accounts/