Six common ISA myths dispelled

ISA MYTHS

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Still unsure of whether an ISA is right for you? We separate the lies from the truth to help you make up your mind...

1 ISAs are risky - FALSE An ISA isn't an investment, it is just a "wrapper" that money is kept in to protect it from the tax man. Other examples of wrappers are self-invested personal pensions (SIPPs) and pensions. Think of an ISA as a box that prevents the tax man being able to touch your investment returns. Any risk comes from the investments that you have chosen to hold within the ISA, not from the ISA itself. Whatever you decide to invest in, cash, shares, bonds, an ISA should always be the first place that any non-pensions savings go. 2 The financial markets are volatile so I...

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