Abbey ISA

By: EconomyWatch   Date: 25 September 2009

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Abbey ISA (individual savings accounts) is a tax free individual savings account that helps savings grow faster than a regular savings account. The company offers cash ISAs with competitive interest rates. The bank also offers stocks and shares ISAs that are managed by expert investment managers.

Abbey ISA – Various Plans

One can find various tax saving Abbey ISA plans based on investor preferences. Abbey ISA helps an investor to maximize the returns from the individual savings account allowance.

Cash ISAs: Abbey’s cash plans are Direct ISA, Easy ISA and Super Direct ISA. With Direct ISA, one can enjoy preferential interest rates for 12 months. The bank offers variable interest rates for this plan. The company allows investors to transfer funds from any ISA. The bank guarantees very high returns with its Super Direct ISA during the first year, provided investors continue to hold the investments after the first year. The company offers variable interest rates annually for this plan. Abbey offers the instant cash option with its Easy ISA plan. The returns from this plan can be lower than the returns of the other two cash plans.

Stocks and Shares ISAs: A stocks and shares Abbey ISA lets you enjoy the benefits of investing in the stock market without any capital gains tax or income tax. You can opt for Abbey’s individual accounts, if you want either guaranteed growth or high returns. You can invest up to £7,200 in stocks and shares each tax year. You have the option of paying monthly or a lump sum amount. This is a good option for long term investors since the potential returns are significantly higher than what other plans offer.

An Abbey ISA helps you to save taxes on your ISA investments. However, you should aim at maximizing the returns from your investments by selecting the right plan. If you have emergency cash at hand, you can go for a stocks and shares Abbey ISA, since the potential returns are very high. However, you should understand that by investing in stocks and shares, you are taking on more risks than you would with any other plan.


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Most Popular in ISA Individual Saving Account

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