The key differences between the IFISA and the classic Growth Street account include:
- Access to funds – Whereas funds invested in the Growth Street classic account can typically be accessed within 30 days, IFISA funds are invested in a 1 year bond. Early access to IFISA funds is possible (after holding your investment for a minimum of 3 months), subject to a 1.0% charge on total capital invested. In a classic Growth Street account, there is no charge imposed to withdraw funds. As always, the ability to withdraw is subject to investor demand but should be possible in normal market conditions.
- Higher expected interest rate – The IFISA expects to return 5.8% over a 1 year term. This is higher than the 5.3% expected return in the classic account.
- Interest income earned through your IFISA will be tax-free, whereas interest generated through your classic account is subject to taxation in accordance with HMRC tax legislation.
Remember, an IFISA is different to a cash ISA, stocks and shares ISA and lifetime ISA. You are allowed to open one ISA of each type in any individual tax year.
If you have already opened an IFISA this tax year, you will not be able to open a new Growth Street IFISA. However, you can transfer funds that you invested in other ISA accounts in previous tax years.