A General Investment Account, which can also be called GIA, is a particular and flexible saving account which allows the holder to make a wide variety of investments in different areas, aside from an ISA or pension fund. Unlike with these two savings accounts, by opening a GIA the account holder won’t have any particular tax benefits for investing, but he will have to pay income contribution in accordance with his personal tax situation. This particular type of savings account can be really useful for people who own an ISA and already used up their annual allowance. A General Investment Account could also be the right choice for people under the age of 55 who don’t want to lock their money in a pension yet. A GIA also allows the account holder to make a withdrawal at all times and to fund the account by transferring money from an existing investment portfolio. As for the investments, the owner of a GIA can invest without any limit in shares, funds, stocks, properties, bonds and so much more. To open a GIA, the account holder must be 18 years old resident in the UK. For a better comprehension of this matter, keep reading the following paragraphs to find out the benefits of a GIA and the main difference between a General Investment Account and an Individual Savings Account.
Benefits of a GIA
A General Investment Account could be a really good choice for people who want to start their investment journey. A GIA is a user-friendly investments account which gives the holder the freedom to withdraw his money at any time, to invest as much as he wants in many different areas and to pay taxes and contribution in accordance with his personal tax situation. Also, as previously mentioned, opening a GIA could be really convenient for the owners of an Individual Savings Account who already used up their annual allowance. Also, all people under the age of 55 who don’t want to lock their money in a retirement account could benefit from a GIA, because they wouldn’t be forced to wait years before making a withdrawal of their funds. Another important characteristic of General Investment account is that there is no fixed minimum period over which it must be held.
What’s the difference between ISAs and GIAs?
Nowadays, more and more people decide to begin their investment journey. As previously mentioned, the GIA is a really good choice for all those holders who already used up their annual ISA allowance. But what’s the difference between ISA and GIA? An ISA is an Individual Savings Account, a particular type of savings account which allows the owner to save or invest money in many areas without paying any tax. This kind of account comes with a restriction on the volume of money the owner can deposit or withdraw in one year: the annual ISA allowance amounts to £20,000 per year. On the contrary, a GIA is a General Investment Account that has no limits on how much the account holder can invest each year. However, this kind of account isn’t tax-free like an ISA. As mentioned above, despite of the lack of tax benefits, the owners of a General Investment Account will have to pay contribution depending on their tax situation. Basically, this type of investment account enables holders to hold investments outside of tax wrapper without forcing a limit on how much they can invest in one year. Also, by choosing a GIA, the owner won’t have any restrictions on when he’ll be able to access his money. Just like an ISA, a GIA will grant the holder the opportunity to invest his money in a wide range of stocks, shares, properties and so much more. As consequence, the holder can build a diversified portfolio. Just as with the Individual Savings Account, it is really important to carefully organize one’s investment by creating a strong investment plan in order to avoid any risk. It is really important to remember that when investing on stocks, shares and properties, the value of investments can go down as well as up, so it’s advisable to accurately plan the investments and perhaps seeking the help of professionals in order to have financial advices.
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