New ISAs explained: Scottish Friendly


Confession time…my husband is an accountant.

I know I told you he was Bradley Wiggins on my “other” blog, but clearly I wasn’t 100% honest about that…he just likes cycling, and actually he spends all day in a suit with a calculator *not stereotyping at all*

We have an ISA, and from the 1st July – that was yesterday you know – ISAs are now New ISAs. The government is looking to encourage more of us into saving by making the process easier to understand, as well as offering us all more options.

What is a New ISA?

New ISAs are designed to make things a lot simpler and more flexible…to start with you can invest up to £15,000 within the new savings structure. Rather than the silly, and hard to remember sum of £5,940 which was what we used to be allowed each tax year.

The New ISA is still the same in principle though, providing an option for us to invest, tax free, each year into an account that offers us the opportunity to grow that investment, whether through stocks and shares, or cash. If you opt for an Investment New ISA rather than a Cash New ISA – do remember that you aren’t guaranteed to keep your original investment. We all do well to remember the old chestnut;

“Your investments can go down as well as up”

Choose wisely, and balance your risk! Thankfully, as you have £15,000 to play with now, you can do this more easily, particularly as the New ISA enables you to split your money between Cash and the Investment New ISAs.

Confused already? Thought so, in which case, Scottish Friendly has put together a dinky little video to help everyone else understand the New why not take a look?

New ISAs are designed to be flexible, which when you have a family, is extremely important as your circumstances do tend to change rather fast. Particularly, if, like us, you suddenyl find yourself with two kids a lot sooner than you had originally anticipated…

To help with things like the unexpected appearance of another small person, you can invest different amounts across the two different types of New ISA; cash or investment, and even move your money between providers easily after your original investment.

Why not take a look and see if this is something for you and your family? Saving for the future is something that we should all take a look at if we can.

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Photo credit: Grant Cochrane /