Help on investing and savings?

Question

what in an isa and how does it work? where is the best place or what is best to do with 100k or any other suggestions. thnks

Answer 1

an ISA is a tax efficient 'wrapper'. Different types of investment can be made and then wrapped in an ISA. An ISA is not a type of investment per se. Let's sya you want a cash deposit account. You can either deposit money with a Bank or building society and earn interest at a certain rate. This interest will be taxable. So if all your earnings are above your tax free allowance this interest will be taxed. However if this same investment is wrapped in an ISA, the interest becomes freeof tax, whatever your tax position is, even if you are in the higher tax bracket. Likewise bonds and other qualifying investments (shares listed on a recognised exchange), the interest or dividends are tax sheltered. This shelter also covers any Capital Gains Tax (CGT). Note ISA savings are not sheltered rom Inheritance Tax (IHT)  

Answer 2

An ISA is an investment that is not taxed. Read all about it, and other investing, on this web site - http://www.thisismoney.co.uk/invest - For that amount of money, you must get advice from an Independent Financial Adviser.

Answer 3

Your best bet is to invest the maximum amount allowable (which for the 08-09 tax year is £7200) in a Maxi ISA.  This invests your money into multiple companies (you can choose which ones, to some extent), and the growth of those companies is what gives you your interest.  Obviously higher risk investments yield higher rewards.

The rest of the money is best going into a high yield savings account such as the one with Kaupthing Edge - however you may also consider investment in shares, I've used HSBC InvestDirect and get on well with it.