I have been using the T212 āStocks ISAā to invest in pies, and I have also invested in a few individual companies, but have done that in the āInvestā section.
I had done this as i had erroneously thought thatās how it worked. I did not appreciate you could invest in individual companies under the āStocks ISAā section!
Soā¦ I need to better understand thisā¦ Question: I assume the core benefit in investing in āStocks ISAā and not under āInvestā is that they are protected from income tax, whereas in āInvestā they would be liable?
My scenario: I have 30k in savings. 20k is in T212 (Roughly, 18k cash ISA, 1.5k Stocks ISA, 0.5k Invest). The other 10k is in a Chip Cash ISA.
As i want to invest in individual companies, to make best of my money, I assume it is best to invest in T212 āStocks ISAā and not purchase companies in āInvestā? (I can then use more allowance from my Chip Cash ISA).
Anything held in a GIA can be subject to capital gains tax and income taxes.
An ISA is free from U.K. capital gains tax or income taxes.
A GIA allows for unlimited deposits.
An ISA allows for Ā£20k of new money to be added each tax year. In addition a flexible ISA allows you to redeposit any withdrawals in the same tax year, without impacting the Ā£20k limit.
End of day for a U.K. investor they are just different containers of your savings / investments that have different advantages / disadvantages. General rule is to utilise your ISA first.
In addition - the chip cash ISA is a variable rate currently at 4.58%, there are better rates out there!
For disclosure I am an investor in Chip, and although I hope I see a return on my investment, they have wasted a lot of investors money to get to where they currently are, and have quite frankly pi$$ed off a lot of friends I had initially referred that I no longer use them or recommend them.
Things like some friends had stopped using the auto save, but it got switched back on automatically, then they were all signed up to their monthly premium plan by default (even though they stopped using chip), then they implemented fees charged every 4 weeks and every month which annoyed some others so all have since left.
Theyāve also changed their investment deck metrics over the years, which is fine but does that then mean they misled previous investors?
The investing in fine wine and cars was also a gimmick they wasted funds on to.
I had looked at Moneybox - but i was not confident that in the year I wouldnāt need to make 3 withdrawals; hence why I chose Chip.
Always good to hear of experiences; and those Chip experiences donāt fill me with confidence.
Moneybox has been recommended to me by friends, but it was just the 3 withdrawal limit that puts me off.
But you havenāt as there are funds in Chip. Both support transfers. That said there is value holding cash at different institutions. You never know when you may need access and one could have IT issues.
