which iSA is right for you?
Decide how to make the most of your ISA allowance by learning more about the different types of ISAs available.
Individual Savings Accounts (ISAs) were introduced in 1999, offering savers and investors a means to protect their finances from taxation. Initially, the annual contribution limit was set at £7,000. Fast forward to the 2023/24 tax year, and this limit has significantly increased to £20,000. The evolution of ISAs extends beyond just the enhanced allowance; the variety of available ISA types has expanded, each presenting distinct features and advantages. To assist in determining if an ISA aligns with your financial objectives, we've highlighted some key distinctions among the different types.
It's important to note that this information is not personal advice. If you're uncertain about the suitability of ISAs for your situation, it's advisable to consult with a financial expert. Be aware that tax regulations are subject to change, and the benefits of ISAs vary depending on individual circumstances. Unlike the relative stability of cash savings, investment values can fluctuate, meaning there's potential to recover less than the original investment. Additionally, inflation can diminish the future purchasing power of money.
How much can I invest in an ISA?
Each tax year (6 April to 5 April) there’s a limited amount of money you can put in ISAs. This tax year the ISA allowance is £20,000.
Tax rules for ISAs can change and their benefits depend on your circumstances.
COMPARE ISAs
Stocks & Shares ISA
Innovative Finance ISA
Stocks & Shares ISA
An ISA for Investors.
With a Stocks & Shares ISA you can put money into an ISA and use it to buy shares, funds and other types of investments.The money you invest is free from UK capital gains and income tax. By investing you can potentially grow your money more than just saving in a Cash ISA. Stocks and Shares ISAs are generally best for
An ISA for Investors.
With a Stocks & Shares ISA you can put money into an ISA and use it to buy shares, funds and other types of investments.The money you invest is free from UK capital gains and income tax. By investing you can potentially grow your money more than just saving in a Cash ISA. Stocks and Shares ISAs are generally best for investing for at least three-five years. That’s because the longer you invest, the greater the chance that your money will outperform cash.
When your money’s invested in a Stocks and Shares ISA you can still withdraw it whenever you need to – but remember investing should be for the long term.
Cash ISA
Innovative Finance ISA
Stocks & Shares ISA
Just like a savings account.
Except you don’t pay income tax on the interest you earn. It’s a stable way to save, since your money won’t be invested in the stock market.
There are two main types of Cash ISAs – variable and fixed rate. Fixed rate Cash ISAs usually offer slightly higher rates than variable Cash ISAs, but the idea is that you
Just like a savings account.
Except you don’t pay income tax on the interest you earn. It’s a stable way to save, since your money won’t be invested in the stock market.
There are two main types of Cash ISAs – variable and fixed rate. Fixed rate Cash ISAs usually offer slightly higher rates than variable Cash ISAs, but the idea is that you don’t withdraw your cash before the fixed term – sometimes you still can, but you might be penalised.
Because interest rates are currently so low, your savings won’t grow much in a Cash ISA.
Innovative Finance ISA
Innovative Finance ISA
Innovative Finance ISA
P2P / P2B tax-free lending.
Perfect for those who seek a higher rate of interest than traditional savings accounts.
An innovative finance Isa (IFISA) - is an Isa that contains peer-to-peer and peer-to-business loans instead of cash (as in a cash ISA) or stocks and shares (as in an investment ISA). P2P / P2B lending matches up investors, who
P2P / P2B tax-free lending.
Perfect for those who seek a higher rate of interest than traditional savings accounts.
An innovative finance Isa (IFISA) - is an Isa that contains peer-to-peer and peer-to-business loans instead of cash (as in a cash ISA) or stocks and shares (as in an investment ISA). P2P / P2B lending matches up investors, who are willing to lend, with borrowers, who could be individuals, businesses, or property developers. And because you're cutting out a bank by investing your money - you tend to earn higher rates of interest than a traditional savings account.
ISA Investor
0% - Capital gains on most investments (in excess of the £12,300 annual allowance)
0% - Dividend income over £2,000* (i.e. income from shares)
0% - Interest income (i.e. from cash, corporate bonds and other fixed interest investments)*
