Halifax ISA

By: EconomyWatch   Date: 30 September 2009

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Halifax ISA is an individual savings account that lets you to save up to £7,200 each tax year and does not attract any income tax or capital gains tax. Halifax offers both cash and shares and stocks ISAs. One can invest up to £3,600 in cash and the remaining £3,600 in a stocks and shares ISA. One can also invest the entire allowance in a stocks and shares ISA.

Halifax ISA - Products

Halifax ISAs are of different types. One can choose the product based on his or her investment objectives.

Cash ISA: Cash ISAs are good for investors with a short-term investment goal. Cash ISAs are divided into fixed rate cash ISAs and variable rate cash ISAs. As the name suggests, fixed rate cash ISAs offer a fixed interest rate for the investment period, whereas the interest rate of variable rate cash ISAs vary. If you do not want to take risks and the market is volatile, it is better to opt for a fixed rate ISA. Halifax’s cash ISA products include Fixed Rate ISA Saver, ISA Saver Direct and Variable Rate ISA Saver.

Stocks and Shares ISA: Stocks and shares Halifax ISA is a tax efficient way to invest in the stock market. One can invest up to £7,200 each tax year in a stocks and shares ISA. Halifax offers both income and growth options with its individual savings accounts. Based on your investment style, you can choose a Halifax ISA product.

Halifax Self Select ISA: One needn’t pay capital gains tax on the returns of a Self Select Halifax ISA. This Halifax ISA lets investors choose stocks and shares on their own. One can choose individual shares or funds. Basically, it is a flexible way to invest in the stock market. The important aspect is that this account combines the advantages of a savings account and a share dealing account.

You should choose a cash Halifax ISA if you need to withdraw money from time to time and are satisfied with moderate returns. You can opt for a stocks and shares Halifax individual savings account if you wish for higher returns and are willing to take on higher risks for this.


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Most Popular in ISA Individual Saving Account

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