ISAs - PEPs and TESSAs

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Aren't Peps dead?

Sort of undead. Although it has not been possible to buy new Tessas or Peps since 5 April, 1999, you can continue to hold a Pep or Tessa account that was opened before that date.

What can I do with my Pep?

As of 6 April 1999, putting new money into a Pep has not been possible. However, you can still withdraw returns from your Pep or reinvest the returns in the Pep.

You should review your investments regularly. You can also transfer accumulated funds to another Pep manager, but check the transfer costs first.

And Tessas?

You could still put money into a Tessa (subject to the TESSA limits) until the account was five years old.

When the Tessa matures you can move some or all of the money (but not any interest or bonuses) you paid into the Tessa:

• either into a cash mini ISA
• or into the cash component of a maxi ISA
• or into a special "TESSA-only" ISA (Toisa)

Whichever you choose, this transfer (of the capital only) from your matured Tessa is in addition to the normal annual Isa limits set out. You must also transfer the money within six months of the date your Tessa matures.