What is the ISA allowance?
You can contribute £20,000 each tax year across all ISAs and can contribute to multiple ISAs each tax year. With a Lifetime ISA you can only contribute £4,000 per tax year and with a Junior ISA you can only contribute £9,000 per tax year.
There is no lifetime limits on what you can contribute to ISA accounts.
Am I eligible for an ISA with mynestegg?
To open a Stocks & Shares ISA with mynestegg, you must be at least 18 years of age and be both a UK resident and UK citizen for tax purposes.
What are the different types of ISA products?
There are four main types of ISA in the UK:
1) Stocks & Shares ISA: this is where your money is invested to try and achieve a growth that outperforms cash and inflation each year.
2) Cash ISA: you get a guaranteed interest rate in return for depositing your money into this type of ISA.
3) Junior ISA: these are used for children up to the age of 18 and can be either cash or stocks & shares with an annual allowance of £9,000.
4) Lifetime ISA: this product is used to either purchase your first home or for retirement purposes and your contributions received a 25% top up from the government up to £4,000 worth of contributions (£5,000 including the bonus). You can only open a Lifetime ISA between the age of 18 and 40 and if you want to access the funds for any purpose other than buying your first home or retirement, you will be subject to a 25% penalty.
How do ISA withdrawals work?
You can withdraw money from your ISA at any time without any fees. To initiate a withdrawal, simply click 'Withdraw Funds' on your ISA dashboard. You will be able to specify the amount you wish to withdraw and track the progress of your withdrawal through your mynestegg portal and/or mobile app. The withdrawal will appear in your bank account under 'Seccl Tech,' which is our custodian provider.
What are the tax benefits of an ISA?
ISAs are exempt from income tax and capital gains tax. This means that you don't have to pay tax on any income or profits on your account. You can withdraw money from your ISA at any time with no tax penalty.
What happens to my ISA when I die?
If you were to pass away, your ISA would form part of your estate and would be distributed to your beneficiaries as requested. If your spouse or civil partner dies, you can inherit their ISA allowance. This is done by adding a tax-free amount to your ISA up to the value they held in their ISA when they died or the value of their ISA when it's closed. If this could be relevant to you please contact one of our team to discuss further.
How can I cancel my mynestegg ISA and what is the 'cooling off' period?
Please refer to the ISA Key Features Document in your mynestegg Document Store.
With the mynestegg ISA you have 14 days as a 'cooling off' period where you can cancel the contract with us once money has been added to your account and have your contribution returned. Please note that the money paid back to you will be the same as the value it is at the time of cancellation.
To cancel your ISA please email [email protected].