What is an ISA?
- An ISA (Individual Savings Account)is a tax-free way to save or invest.
- The interest on a cash ISA is free from tax, which means you keep any interest you earn.
- Each tax year starts on 6 April and you get a new ISA allowance. For the tax year 2016/17, the ISA allowance is £15,240 for cash, Stocks
- & Shares and Innovative Finance ISAs, and £4,080 for Junior ISAs.
- Cash ISAs have similar features to savings accounts, but the interest you earn is tax-free. You’re allowed to save up to your annual ISA allowance.
- You can put your Stocks & Shares ISA allowance into a range of investments. Any gains you make are tax efficient.