If you use ISAs wisely, you can put away up to £15,240 without having to pay a penny of tax on the interest you earn*
*Tax advantages may be subject to change and will depend on your individual circumstances.
You can invest your full ISA allowance of £15,240 in a stocks and shares ISA. Stocks and shares ISAs come in two forms:
You can put up to £15,240 in a cash ISA and shield your returns from tax.
A Cash ISA (Individual Savings Account) is special type of savings account where you don’t pay tax on the interest you earn.
ISAs were introduced by the government in 1999 to encourage people to save. But, because of the tax benefits, the government sets a limit of how much you are able to stash into an ISA each tax year.
This sum can be held entirely in cash, stocks and shares, or any combination of the two.
For the tax year 2016-17, the limit is £15,240.
You can find everything you need to know about ISAs with our dedicated hub page.
†Saving based on interest paid on the market leading product vs. average rate on offer in the UK; and based upon using the full 2011-2012 Cash ISA allowance of £5,340.