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Other types of direct investment in shares
Shares - A Beginners Guide to Making Money
How best to invest in stocks and shares
Investment trusts
Unit trusts and Open Ended Investment Funds
Offshore funds
Other types of bond or stock

STOCK, BOND or SHARES

Self-Select Maxi ISA

(Also called Individual Savings Account)

You buy and sell your own stocks and shares within the umbrella of the ISA rules with a few tax advantages, mainly for higher rate taxpayers. You generally have to remain fully invested in securities.

Who can invest UK residents 18 or over.

How worthwhile Good value for higher rate taxpayers. Not of much interesr to anyone else. The income tax breaks are only worthwhile if you invest in bonds or fixed interest stock through an ISA.

Minimum Varies.

Maximum £7,000 a year. The limit will be raised to £7,200 from 6 April 2008.

Suitable Lump sums.

Money back Any time. If you die the plan ends and your money is returned.

Interest Variable if you buy shares. Called dividend. If you buys stocks, the interest is fixed.

Interest paid Your choice to accumulate within the plan or paid by cheque to you or to a bank account.

Tax There is no higher rate tax or capital gains tax imposed. However for basic tax payers, the only advantage is that income from bonds is tax exempt.

Fees to pay These may exceed the tax saving..

Passbook None. Statements sent.

Children Not allowed.

Risk High. You should have a balanced portfolio of at least 7-10 shares in and out of the ISA unless you buy investment trusts.

How to invest Not applicable.

Where from The on-line brokers also do phone trades.

Last updated 17 December 2007.