Virgin Money 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
  •      

Virgin Money ISA is a government approved savings plan to get returns without paying taxes. With ISAs or Individual Savings Accounts, one can save up to £7,200 every tax year in cash or as stocks and bonds.

Virgin Money ISA: Types 

Virgin Money Individual Savings Accounts are broadly classified into two types:

Cash ISAs: This type of Virgin Money ISA is just like a savings account. However, the investors do not need to pay taxes on the savings. If you do not want to take any risks and enjoy the benefits of tax savings, you can opt for this account. However, you cannot invest more than £3,600 in a cash account in a single tax year. The returns from a cash ISA will be lower than a stocks and shares account when the deposit rates are low.

Stocks and Shares Virgin Money ISAs: Virgin Money ISAs in Stocks and Shares come in various forms. One can select from the bank’s FTSE All-Share Tracker ISA, Climate Change ISA and Bond and Gilt ISA. The features of these ISAs are as follows:

  • Bond and Gilt ISA: This type of Virgin Money ISA offers higher returns than cash ISAs. It is ideal for an investor who wants to gain income with low levels of risk. Corporate and government bonds entail lower risks than stock market investments.

  • FTSE Tracker ISA: Returns from this type of ISA will be in-line with the performance of the stock markets. This ISA helps you to spread your investments across stocks on the London Stock Exchange. The potential returns from the FTSE Tracker ISA are usually higher than the Bond and Gilt ISAs offered by Virgin Money. Also, this type of ISA entails high risk levels.

  • Virgin Climate Change ISA: This type of ISA is expected to outperform the stock markets. The bank invests your funds in companies that have lower than average environmental foot print. However, the Virgin Climate Change ISA carries higher risks than any other ISAs offered by Virgin Money.

You can choose from the various types of Virgin Money ISAs based on your investment objectives. The bank helps you to choose the ISA that best suits your needs.


  • Dot Div
  •      

Most Popular in ISA Individual Saving Account

Related Links
blog comments powered by Disqus