What is an ISA?
ISA stands for Individual Savings Account, and there are two types – cash ISAs and stocks and shares ISAs.
What makes them so popular, compared to a standard savings account, is that cash ISAs let you save without having to pay any income tax on the interest. With a stocks and shares ISA you don't pay any personal tax on any income received or increase in the value of your investment.
Tax-free cash ISAs*
Making the most of your money
With a cash ISA your money is at no more risk than any other savings account and a great way for you – not the taxman – to keep more of your money.
For every £1 of interest you earn on your savings, instead of the taxman pocketing 20p of income tax (if you’re a basic rate taxpayer), you get to keep it all.
* Tax rules may change in the future and taxation will depend on your personal circumstances.