Llyod TSB has a range of bank accounts and personal banking services to suit the needs of both the Adult individual and Child.

Save money

Today we will be reviewing two types of plans being offer by Llyods TSB

  1. ISAs
  2. Junior Cash ISA

ISA stands for Individual savings accounts. In order to promote the habit of saving, Government of U.K has introduced ISAs in the country. You can save your money under ISAs without having to pay any personal tax on the interest or return you earn on that money.

There are Cash ISAs, which are a type of saving accounts where you don’t have to pay any tax on the interest you earn on your savings. So find the best ISA option as per your needs.

Then there are Stocks and Shares ISAs, which gives you the liberty to invest your money in stocks and shares without having to pay capital gain tax on the money you make on the growth of your shares. There is also no tax to be payed on the income you receive from corporate bonds and gifts. There is also no need to pay the extra 22.5% or higher rate or 32.5% additional rate tax on gross dividends shares held in an ISA if you are already paying higher or additional rate taxes.

Benefits of ISAs

Cash ISAs are tax free which means you do not have to pay taxes on the interest you earn through your savings. In comparison to Cash ISAs, Stocks and Shares ISAs are tax efficient , ,which means their tax statuses are favourable. It should be noted here that the favourable tax treatment for ISAs depends on the circumstances of an individual and can vary in the future.

There is cash allowance of £5,760 available for all ISA plans and if you go for four year fixed rate cash ISA, you can earn interest rate of up to 2.15%. You can manage all types of ISAs through the internet which adds the convenience of handling,maintaining and managing your ISA account.

In addition to the ISA or Individual savings account, there is also Junior Cash ISA available. Under this scheme, you can save for your child under the age of 18 years . You child will then receive the money as a gift from you as a parent after the maturity. Under Junior Cash ISA, you can earn an interest rate of 3.00% tax free/AER on amounts from £1.

Now you can Save with a junior ISA as Junior Cash ISA is available for children under the age of 18 years and for those who don’t hold or are not entitled to hold a Child Trust Funds. You can save up to £3,720 in a tax year or less, incase you have also invested in a junior stocks and shares ISA. Anyone can make a deposit within the £3,720 annual allowance.

No withdrawals is possible, until the child is 18 when accounts matures into an adult cash ISA. In an exceptional circumstances of child death or being terminally ill, you can withdraw the amount.

in U.K there are two types of Junior Cash ISA is currently being offered. Junior Cash ISA and Junior Stocks and SHares ISA. Llyods are offering Junior Cash ISA plan.

Summary

Individual Savings Account and Junior Cash Individual savings account are great ways to save money for your and your child future. LLyod is offering amazing plans which can help you to not only save money but you also get the benefits of opening a ISA by saving on the interest rate you earn.