FAQ About Individual Savings Accounts

Individual Savings Accounts
one year ago | alfred

What is Individual Savings Accounts (ISAs)

Individual Savings Accounts (ISAs) are a type of savings account offered by financial institutions in the UK that allow individuals to save or invest money in a tax-efficient manner.

ISAs can be used for a variety of savings and investment purposes, including cash savings, stocks and shares, and innovative finance investments. Individuals can invest in multiple types of ISAs in a tax year, but are subject to an annual allowance limit, which is set by the UK government.

The main benefit of an ISA is that any interest, dividends or capital gains earned within the account are tax-free, up to the annual allowance limit. This means that an individual can save or invest up to a certain amount each year, without having to pay tax on the returns they earn.

There are several types of ISAs, including Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, Lifetime ISAs, and Junior ISAs, each with their own rules and regulations.