ISA account

This is one of several tax-friendly investing accounts that investors can open. An ISA is solely for people living in the UK.

What is an ISA?

ISAs are investment accounts that offer tax breaks on the money you save. The government offers these tax breaks as an incentive to encourage people to save for their future.

Types of accounts

There are two types of ISAs: cash ISAs and stocks and shares ISAs.

Cash ISAs are savings accounts where you can earn interest on your money without paying any tax on the interest.

Stocks and shares ISAs are investment accounts where you can invest in a range of different assets, such as shares, bonds and funds. You don’t have to pay any tax on the profits you make from your investments.

When should you open one?

If you’re thinking about saving for your future, an ISA could be a good option for you. The sooner you start saving, the longer you’ll benefit from the tax breaks. You can open an ISA at any time, but if you want to get the most out of it, it’s best to start as early as possible.

How much can you save into an ISA?

The amount you can save into an ISA depends on the type of ISA you’re opening. For now, the limit for cash ISAs is £20,000. For stocks and shares ISAs, the limit is £20,000 as well.

What are the benefits?

There are two main benefits of ISAs:

  1. Tax breaks: The money you save into an ISA is exempt from income tax and capital gains tax. This means you keep more of your money, and it can grow faster.
  2. Flexibility: ISAs offer a lot of flexibility, which is helpful if your circumstances change. For example, you can withdraw money at any time without penalty. And if you need to access your money in an emergency, you can usually do so without having to pay any tax.
Best copy trading broker 2023
This is default text for notification bar