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.