Tesco ISA

By: EconomyWatch   Date: 30 September 2009

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Tesco ISA is an individual savings account that lets you to save up to £7,200 each tax year without attracting any taxes. It is an investment option designed by the UK government to benefit investors. One can invest in cash or stocks and shares, depending upon the investment goals. The government lets you save up to £3,600 in cash. One can also use the total allowance of £7,200 in stocks and shares or a combination of cash and stocks and shares.

Tesco ISA: Types

Tesco Individual Savings Accounts are offered by Tesco in collaboration with Norwich Union. They offer both cash and stocks and shares ISAs.

Cash ISA – A Tesco Cash ISA lets you to save up to £3,600 in cash each tax year. It works like an ordinary savings account. However, you need not pay taxes on the returns. You will be offered a fixed or variable interest rate option, based upon your choice. If you can wait for at least a year, you can opt for the fixed rate option that offers higher interest rates. If you need to withdraw cash at any point of time, it is better to opt for a variable rate option. Tesco Cash ISA is a good option for short term investors.

Stocks and Shares ISA – Tesco’s Stocks and Shares ISAs let you to enjoy the benefits of investing in the stock markets without attracting taxes on capital gains. It is better to invest in this type of Tesco ISA if you can wait for at least five years. Tesco offers many options in its stocks and shares ISA plan.

UK Index Tracking Fund for Growth: This Tesco ISA option offers good potential returns in the long term.

UK Equity Fund for Growth: With this ISA option, Tesco invests your funds in UK equities. The performance of UK equities will impact the returns from the ISA. It is a good option for long term investors who are looking for capital growth.

Higher Income Plus Fund: This is a good option for income-oriented long-term investors. It is suited for investors who can invest a lump sum amount and wait for at least five years to realize good income.

Stocks and Shares Tesco ISAs are a good option for investors who want to realize the maximum possible returns from their ISAs. Although the stock markets tend to be volatile, they offer good returns over a period of time.

Featured Reports That You Might Like: 
Date: 
18 Feb 2012
Price: 
   

First Shanghai Investments (FSIL) is engaged in the financial services, direct investments, property and hotel development businesses. The company primarily operates in Hong Kong and China. It is headquartered in Central, Hong Kong, and ...

Date: 
17 Feb 2012
Price: 
   

Carrollton Bancorp (Carrollton) is a holding company for Carrollton Bank (bank), which is engaged in the general, commercial and retail banking business. The bank primarily provides consumer and commercial banking services to individuals ...

Need more featured reports? Check out Economy Watch's research Store

blog comments powered by Disqus