Find the right ISA for you
An ISA (Individual Savings Account)will allow you to invest up
to a certain limit during each tax year, and any interest you earn
on the account is awarded tax-free.
ISA rates 2015/2016
You can put up to £15,240 in a cash ISA and not pay any tax on
the interest. This increase on ISA allowances will be
available from the 6th April 2015 and can be made up of a cash ISA,
a stocks and shares ISA or a combination of these.
The limit renews each year so you can continue saving if you
choose to. However you can't carry over any remaining
allowance, so to make the most of the tax free savings use your
full ISA limit each year if you are able to.
Read our guides for taking out an ISA for 2015/2016
There are different types of ISA available, allowing you to be
flexible with the way you save.
Most providers will offer different types of account with fixed
or variable rates, and various access options so shop around to see
where you can get the most for your money
comparison tables provided by Love Money
If you are resident in the UK and over 16 years old, you will be
entitled to open a Cash ISA. The limit to the amount you can save
in the current tax year is £15,000 but will increase to £15,240 in
Cash ISAs are a safe way of investing your savings without any
You can choose to invest a lump sum or pay in over a period of
time as long as you keep within the upper limit. ISAs are flexible
enough for you to withdraw your savings but do remember, that if
you have already invested the full £15,000 you won't be able to pay
in any more money until the new tax year.
Stocks & Shares ISA
If you are wishing to invest the full £15,000 during the year
then you can do this with either a Cash ISA, a Stocks and Shares
ISA or a combination of the two.
Stocks & Shares ISAs contain an element of risk as they are
associated with the investment market but can potentially offer a
greater return than a traditional savings account.
Junior ISAs were introduced in 2011 as a tax-efficient way of
young people saving for the future. The accounts are similar to a
Cash ISA but available to anyone under the age of 18 and designed
to help both children and their parents save.
The limit for a Junior ISA in the tax year 2015/2016 will
increase to £4,080 (currently £4,000).
If you want to find out more about how to invest your savings in
an ISA, read our comprehensive guides for more information, tips