Savings: Good news as thousands of Britons become ISA millionaires – how to do it | Personal Finance | Finance

According to the latest figures from HM Revenue and Customs (HMRC), some 2,000 people are now ISA millionaires. While this may be a lofty goal for some, for others achieving this figure is a key motivation.

Toby Sims at Fidelity International analysed the idea of becoming an ISA millionaire, as well as its potential benefits.

He said: “ISAs are a great place to save because they keep all your money bundled up in nice tax-protective clingfilm.

“ISA millionaires love them because their benefits carry on forever. 

“With your money protected from tax, year after year, over time you can protect a bigger and bigger amount.”

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However, older investors may want a less risky approach which protects their capital rather than growing it exponentially.  

Mr Sims added: “If there’s a lesson to be learned from the ISA millionaires, it’s about investing smart. 

“We can all aspire to get the most out of our personal allowance, invest our money for as long as possible, and recognise which investments are best suited to achieving our objectives – even if making a million isn’t one of them.”

So, how does a person get started on their ISA savings journey?

People will be able to save tax-free with ISAs to a maximum of £20,000 per year at present.

There are four types of ISAs this can be achieved with: cash, stocks and shares, innovative finance and Lifetime.

Individuals can put money into one of each kind of ISA each tax year. To open an ISA a person must be resident in the UK, or a Crown servant.

They must be over 16 for a cash ISA, over 18 for stocks and shares and innovative finance, and over 18 but under 40 for a Lifetime ISA.

ISAs are available from multiple places including banks, building societies, credit unions and stock brokers.

The Government states: “Contact your provider directly for more information about how to open an ISA with them.”

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