Take Control of Your Financial Future

Accepting responsibility for your own financial future is the first step to successful saving, and ISAs are a great way to do that, says Fidelity's Rob Fisher

Holly Cook 5 April, 2012 | 9:12AM

As part of Morningstar's 2012-2013 Guide to ISA Investing Series, I spoke to Rob Fisher, Head of UK Personal Investments at Fidelity International, about the obstacles that young people face when it comes to saving, the benefits of ISAs as tools for flexible saving and investing, how ISAs and pensions can complement each other, and what types of investments a first-timer might want to look into. What follows are excerpts from our conversation.

What Are the Main Benefits of ISAs?
I think sometimes the basic message of ISAs gets lost. For me it’s a nice clean message that once you save or invest in an ISA you never, ever have any tax to pay on interest or returns. So typically stocks and shares ISAs, which investors tend to invest in via funds, are pretty attractive vehicles for that reason. There are subsidiary benefits, such as you don’t need to declare ISAs on your tax return, and they don’t cost any more [than investing in funds outside of an ISA].

A few years ago ISAs were arguably a little neglected, but now that ISA allowances are back above £10,000 per year—which is a reasonable amount of money whichever way you look at it, and you have that basic tax shelter feature, I think really they’re the first place of call for people saving or investing.

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About Author

Holly Cook

Holly Cook  is Managing Editor of Morningstar.co.uk

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