Money savings expert Martin Lewis explains all about the replacement to the ISA, the NISA on ITV This Morning.
Martin says: “Tomorrow sees the biggest change to savings since 1999, when ISAs launched. That’s because on (July 1) ISAs transform into NISAs (new ISAs), meaning everyone can now put £15,000 into cash or shares savings without paying tax on it.”
What is a NISA?
Answer: It is a savings account you don’t pay take on.
How much can I put into a NISA?
Answer: The new tax year started on 6 April. From this date every UK over-16 got a brand new, bigger cash ISA allowance of £5,940 (up to £11,880 stocks and shares for over-18s).
Yet on 1 July, ISAs turn into new ISAs (NISAs), meaning you could choose to pay in:
· £15,000 to a cash NISA.
· £15,000 to a stocks and shares NISA.
· A mix of the two up to £15,000 in total.
16-18-year-olds can’t open an adult stocks and shares NISA, so their £15,000 must all be deposited into an adult Cash NISA.