ISAs explained.

Common enquiries

Still unsure about something? We’ve collected some of the most frequently asked ISA questions and put them in one handy place.

ISAs (Individual Savings Accounts) are savings and investment products where you don’t pay income tax on the interest you earn (or on the increase in value of your investment).

Halifax offer three types of ISA:

  • Cash ISAs where you either have
    a) easy access with no charge for withdrawals but the interest rate is variable, so it could go up and down
    b) fixed term, where the interest rate is fixed for a length of time that you choose. However you can only withdraw money by closing your ISA, but doing this before the end of the term will result in a charge equivalent to a number of days tax free interest and may mean you get back less than you put in.
  • Stocks and Shares ISAs are a tax-efficient way of investing if you’re looking to put your money away for the medium to long-term (at least 5 to 10 years). Unlike cash ISAs, the value of your investment can go down as well as up and you may get back less than you originally invested.
  • Junior ISAs are a tax-efficient way to save for your child and can be accessed by the child when they reach 18 years of age. A child can only have one junior cash ISA and/or one junior stocks and shares ISA.

To get the best use out of your ISA you should use your maximum annual allowance and do this as early as possible during the tax year – which runs from 6th April one year to 5th April the next year.

View our range of ISAsMore about the annual ISA allowance

Tax treatment depends on your individual circumstances and may change.