ISA Cash Component
This component allows individuals to invest in Building Society deposits, UK and European authorised Bank deposits, cash unit trusts or National Savings. The cash component allows individuals as young as 16 years to open either Mini Cash ISA's or the cash component of a Maxi ISA.
ISA Stocks & Shares Component
This component allows individuals to invest in collective shares, for example, Unit Trusts, Investment Unit Trusts, shares listed on a recognised stock exchange, bonds and gilts and Life Assurance. This type of ISA is good if individuals are able to leave their money alone for a long period of time, usually over five years, and are comfortable taking on the risk of market fluctuations in the value of their investment.
With these types of accounts there is no guarantee that the return at the end of the term will exceed the amount invested.
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