STAKEHOLDER SAVING
Medium Term Investment and ISA plan
Frequently asked questions
- What if I already have a Maxi ISA or Medium Term Investment Plan?
- How old do I have to be to invest in a Maxi ISA?
- How much can I save in a Maxi ISA?
- Can I open a Maxi ISA at any time in the tax year?
- How do I know which Maxi ISA is a Stakeholder Saving approved product?
- If I have put the maximum amount into my Maxi ISA this year can I add more the following year?
- What should I look for when choosing a provider?
- What if I want to change my Maxi ISA?
What if I already have a Maxi ISA or Medium Term Investment Plan?
If you already have a Mini or Maxi ISA, you can still open a Stakeholder Saving Medium Term Investment Plan. The benefits are similar, but you will need to pay tax on interest earned in the account. Banks and building societies usually deduct this tax for you automatically.
Deciding which of these plans is right for you may require some specialist knowledge. Your bank, building society or fund manager will be able to advise you about which of the plans they offer is right for you.
An Independent Financial Adviser can also give you advice. For one local to you, check: www.ifap.org.uk ››
How old do I have to be to invest in a Maxi ISA?
Anyone resident in the UK over 18 can buy investments through a Maxi ISA.
How much can I save in a Maxi ISA?
You can save up to £7,000 in a Maxi ISA with one ISA provider, but that can include stocks and shares, insurance, and cash.
| Type of Maxi ISA | Savings Limit (2005–2010) |
|---|---|
| Stocks & Shares only | up to £7,000 |
Or a combination of the following:
| Type of Maxi ISA | Savings Limit (2005–2010) |
|---|---|
| Cash | up to £3,000 |
| Stocks & Shares | the balance up to £7,000 (that is whatever is left once you deduct the amount saved in cash from £7,000) |
Can I open a Maxi ISA at any time in the tax year?
Yes, in each tax year (from 6th April to 5th April of the following year), you can put money into either:
- One maxi ISA,
- Or one of both mini ISAs
If you already have a Mini ISA of any type for that year you cannot then open a Maxi ISA.
How do I know which Maxi ISA is a Stakeholder Saving approved product?
Just ask your bank, building society or fund manager or get a list of approved Stakeholder Saving product providers.
You can also find an Independent Financial Adviser local to you, at www.ifap.org.uk ››
If I have put the maximum amount into my Maxi ISA this year can I add more the following year?
Yes, but not until the new tax year begins. The tax year runs from 6th April to 5th April of the following year.
What if I want to change my Maxi ISA?
You can only open one ISA of any particular type in a tax year, which runs from 6th April to 5th April of the following year.
For example, you can only open one Maxi ISA a year. If you change your mind after you have opened a Maxi ISA with one provider and want to start saving with another you can, but you will need to ask your new provider to arrange to transfer your savings into the new account for you. You cannot just close your account and open up a new ISA somewhere else or your existing ISA will cease to qualify for tax relief.
If you have any questions ask your bank or building society, or ring the ISA helpline on 0845 604 1701.
Interested in the Stakeholder Saving Medium Term Investment and ISA plan?
