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What is an ISA?

What is an ISA?

ISAs(Individual savings accounts) are saving accounts which are not taxed. You can only invest your yearly ISA allowance. For the current tax year this is £20,000.

This means any interest you make is free from the tax man. There are different types of ISAs:😃🚫

💵💰Cash ISAs are basic accounts, your funds are kept in Cash and are easily withdrawable.

🌎🗺Stock & 📰Shares ISA funds are invested in company stocks and shares🚀.

And 🗼Innovative 🏦Finance ISAs(IFISA) are specific to peer to peer platforms such as Zopa or Ratesetter.

There are also 👀🏛Government backed ISAs which help you save more towards a home.🏠🏖

👩‍💻🤰The Lifetime ISA gives a £1000 per year bonus if you save the maximum £4000 per year.There is a penalty of 20% if you withdraw your funds early and don't put them towards a buying your home.🤷‍♂️

🤓🙊The Help To Buy ISA offers a maximum bonus of £3000 if you save the maximum £12,000.👩‍🏫 Opening an ISA is extremely straightforward..

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What is an ISA?
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