NISA or the New-ISA, I hadn’t heard about them either to be brutally honest. I am properly ditzy about savings and investments, I leave all this type of thing to Blokey.
The New ISA (NISA)
In his budget speech the Chancellor announced that from 1 July 2014 ISAs will be reformed into a much simpler product, the New ISA (NISA). Whatsmore, all existing ISAs will automatically convert to a New ISA. Meaning those already saving and investing into an ISA will benefit from the changes a foot. So what are the differences…
From 1 July 2014 the overall subscription limit set by the Government for 2014/15 will increase from £11,880 to £15,000. It will be possible for new subscriptions to be split in any proportion between a New Cash ISA and New Stocks and Shares ISA – currently, investments into a Cash ISA are limited to a maximum of £5,940. Therefore, the investor will have more choice on where to put their money; invest it all in a New Cash ISA, split it however you want between a New Cash ISA and New Stocks and Shares ISA or invest the full subscription amount in a New Stocks and Shares ISA.
I quoted this from Scottish Friendly. You can read more details on their website if you wish.
Basically I think it gives more freedom, and higher limits of how much you can invest into NISAs or ISAs. I don’t think I know anyone that has the stocks and shares type of ISA at the moment, or maybe it is because people just don’t talk about banking? I know it is not as much fun as playing with the kids at the park, or hugging the pets, but savings are important. A bit like pensions, in an ideal world everyone should have savings. Of course life is not always that straight forward.
In the case of our family we have things like pensions, insurance and a small amount of savings, but not what I consider enough to put into an ISA/NISA. But like I already mentioned I am ditzy with dosh – so check things out for yourself, never treat my advice as your only source of information.
My little sis has an ISA, which makes me feel mega disorganised but I do have a mortgage and insurance so I don’t totally have my head in the sand when it comes to planning for the future.
My advice if you can, start saving. Not fivers in the mattress, or a £2 coin jar, but real proper in a bank savings. You don’t have to save thousands a month, just squirrel away a bit each month. Maybe go on comparison websites and see if you can save on a household bill and whatever you shave off the phone or gas bill, pop it in the bank.
Thinking of “investing in the bank” reminded me of this bit in Mary Poppins. Are you a saver or a bird feeder?