Time is running out to make the most of your 2013/14 ISA and Junior ISA allowance as the last day of the tax year, April 5th 2014, fast approaches.
The ISA and Junior ISA are both tax-efficient savings plans that allow you to save in monthly premiums or in lump sums, which ever suits your needs. Throughout the 2013/14 tax year, you are able to save up to £11,520 in a Stocks and Shares ISA for yourself and up to £3,720 in a Junior ISA for each of your children.
Additionally, these limits will increase to £11,880 and £3,840 respectively for the 2014/15 tax year. However, any tax-efficient savings allowance that is not utilised before the April 5th deadline will effectively be lost, as all ISA and Junior ISA allowances are reset at the beginning of each tax-year.
There are some rules as to who can open an ISA or Junior ISA. For example, in order to open an ISA with Shepherds Friendly, you must be a UK resident and aged 18 or over. Additionally, Junior ISA’s are only available to children under the age of 18 who live in the UK, whilst these need to be opened by the child’s parent on their behalf.
The Shepherds ISA can be opened with a monthly premium of £30 and/or with an initial lump sum of a minimum of £500 and then £100 at a time thereafter. Similarly, the Junior ISA can be opened from as little as £10 a month, and/or with an initial lump sum of a minimum of £100 and then £10 at a time thereafter.
The Junior ISA is available for parents who want to save for their children to receive a tax-free lump sum on their 18th birthday. Once opened, anyone including parents, grandparents and family friends can contribute to the plan to help save for a child.
If you want to make the full use of tax-efficient saving, you can top up your Shepherds ISA or Junior ISA to the maximum 2013/14 allowance by April 5th via our website or by calling us on 0800 526 249. If you don’t already have an ISA for yourself or a Junior ISA for your children, then you can open one with Shepherds Friendly by applying online through our website.
All of Shepherds savings plans are investment based, meaning that any growth achieved via the annual bonus is subject to the performance of the fund. Depending on how well the fund performs these plans may receive an annual bonus. Any annual bonus is normally added to your policy each year. The level of annual bonus can go up and down and there is no guarantee that a bonus will be added each year.
If you are interested in investing into an ISA for yourself or a Junior ISA for your children then you can do so by clicking here to find out more, or by calling 0800 526 249.
Please note: Whilst the information in this article was correct at the time of publication, as of January 2024 we have updated the bonus payment schedule to every three months (quarterly) instead of once a year. Past bonuses are not a guarantee of future bonuses.
