What is an ISA?

An Individual Savings Account (ISA) is a tax-free savings or investment account. They’re available from banks, building societies, asset managers and investment providers.

With an ISA, you won’t pay any income tax on the interest your ISA generates or the increase in investment value. There are many different types of ISA available, including cash ISAs and stocks & shares ISAs.

The amount you’re able to contribute to your ISA is limited by the ISA allowance. For 2017/18, you can contribute a maximum of £20,000 during the tax year, which refreshes each year. This allowance can vary depending on the type of ISA.

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