What Is An ISA?

ISA stands for "Individual Savings Account" and is a type of savings and investment account with certain tax advantages.

You can only put so much money in your ISA throughout any given tax year, and once that year is over, you can leave that money invested in that ISA without it being taxed.

You can have two types of ISA - a Mini or a Maxi.

You're allowed two Mini ISAs each tax year, for either cash or stocks and shares ... or one for each.

Your cash Mini ISA is limited to £3,000, which your Stocks and Shares ISA can go up to £4,000.

You can only have one Maxi ISA each tax year, but you're allowed to invest up to £7,000 in it, made up of a maximum of £3,000 cash and the rest in stocks and shares.

Whichever type of ISA you're considering, remember that you can't make an initial deposit, withdraw against it later on and replace that money further down the line.

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