What’s the Difference Between an ISA and a NISA?

Do you have a savings account? If so, have you ever stopped to think about whether your savings could be working harder for you? Chances are, they could be, and an ISA could be the solution. Also known as an Individual Savings Account, you may have heard friends and family talking about their ISAs. But what exactly is an ISA and what is the difference between an ISA and a NISA? We’re here to straighten things out with some tips on wealth management and savings.

What is an ISA?

An ISA, or Individual Savings Account, is a tax efficient way to save your money (or invest it). You’ll normally pay tax on any interest earned on your standard savings account, but with an ISA, any interest you earn is yours to keep, tax free. Sounds great, right?

What’s the Difference Between an ISA and a NISA?

If you opened your ISA after 2014, chances are you already have a NISA, or New Individual Savings Account. NISAs were introduced in 2014 and were designed to give you a better return on your investment, as well as greater flexibility when it comes to saving.

Back in 2014, the ISA allowance (the amount you can invest each tax year) was £11,880, but only half this amount could be invested in cash. By 1st July 2014, this amount had risen to £115,000 and with the introduction of NISAs, it became possible to split the allowance however you liked between a cash NISA and a stocks and shares NISA.

Flexibility for Your Savings

A NISA and Xero Cloud Accounting also gives you the flexibility to transfer between your stocks and shares NISA and cash NISA – previously it was only possible to transfer funds from your cash ISA to your stocks and shares ISA. Any interest on cash held in a stocks and shares NISA is completed tax free. Basically a NISA lets you save more money, quicker.

Is a NISA Right for You?

If you have a lump sum of money to save or invest, if you’re planning on saving on a regular basis then a NISA is a great idea. With the NISA allowance for 2018/19 set at £20,000, you have the choice of investing or saving up to this amount in either a cash NISA, a stocks and shares NISA or a combination of the two.

Because financial planning can sometimes be complicated, we’re here to help. To find out more about NISAs or wealth management and savings, just get in touch with us.


We are living longer than we ever have before, and this means we’re working longer too, which mean you may end up retiring later than you thought. As state pension age continues to rise, the importance of planning for retirement shouldn’t be underestimated. With so much information out there, you might find yourself wondering what the most important things are to consider when it comes to pension planning. We’ve got 5 things for you to think about – each as important as the next.

#1. What Age Will You (Or Can You Afford To) Retire?

In 2018, the current retiral age is 65 for both men and women, but things are constantly changing. From 2019, state pension age will increase for both men and women and by October 2020 will be 66, increasing to 67 by 2028. Of course, this doesn’t mean you have to retire when you hit state pension age. The actual age you decide to retire will largely depend on the plans you have in place and your finances.

#2. Have You Made Provisions for Living Longer?

With life expectancy getting longer by the year, pension planning is even more important to today’s generation than it was 20, 30 or even 50 years ago. Whether you’re in your 20s, 30s or 60s, you could end up living far longer than you expect. With the proportion of the population over state pension age predicted to rise to 23% by 2031, you’ll need to cover the costs of living for longer – and have enough money to enjoy your retirement too!

#3. What Type of Pension Will You Have?

You may have a state pension, Accountants York, a company pension, a personal pension or a combination of these. A state pension is paid to you by the state when you reach pension age, provided you have made national insurance contributions throughout your life. With a company pension, you and your employer both make contributions towards your pension – it’s sort of like getting a small pay rise from your company.

If you have a personal pension, you will pay money into a pension scheme you have selected yourself. When you retire you’ll be asked what you want to do with your funds – you can usually buy an annuity or arrange an income drawdown.

#4. Should You Seek Expert Advice Regarding Pension Planning?

There’s no substitute for expert, unbiased advice when it comes to pension planning. Seeking advice from a financial advisor can help put you in a strong position financially when you finally retire. It’s never too early to start planning for retirement, but if you are 50+ and still don’t have much organised in the way of funds for retirement, a financial advisor will be able to help you decide on the best way to plan for your golden years.

#5. Where Is Your Money Being Held?

You’ll have more control over where your money is being held if you choose your own personal pension scheme and pay money into it independently. If you have a workplace pension, your employer will choose which company handles your investments, but you can usually let them know the type of risks you’re happy to take.

If you need advice on pension planning or investments for your retirement, we’re here to help, so why not get in touch to find out more?


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