ISA information.

ISAs, or Individual Savings Accounts, are tax-efficient saving and investment products.

There are four types of ISA; Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs.
UK residents can only contribute to one of each type of ISA each tax year, up to a maximum allowance set by HM Treasury. The only exception is for customers who have opened a separate ISA to pay in an Additional Permitted Subscription allowance following the death of a spouse or civil partner. No personal Income Tax or Capital Gains Tax is payable on ISAs.


What are the types of ISA?

Cash ISAs

Cash ISAs are savings accounts which pay tax-free interest and can be either fixed-term or open-ended. There is a low risk to the capital value of your money.

Stocks and Shares ISAs

Stocks and Shares ISAs allow you to invest tax efficiently in stock market linked investments such as managed funds, bonds, and individual company shares. While returns can be higher than a cash ISA, there’s always an element of risk associated with investing.

Innovative Finance ISA

Innovative finance ISAs are a new type of ISA, which were launched in April 2016. They allow peer-to-peer lenders to loan money without paying any tax on interest earned.

Lifetime ISA

Lifetime ISAs were introduced by the Government on 6 April 2017. They allow you to save up to the lifetime ISA allowance each tax year and receive a government bonus of 25% of what you have saved. You can use some or all of the money to buy your first home, or keep it until you're 60.

Cash ISAs

Cash ISAs

Stocks and Shares ISAs

Overview

Cash ISAs are savings held in cash deposits.

You can contribute both a lump sum and regular payments.

Offer access to different investment funds.
 
You can contribute both a lump sum and regular payments.

Transfer information

Can be transferred to:

  • Cash ISAs
  • Stocks & Shares ISA
  • Innovative finance ISA
  • Lifetime ISA

You can transfer between different providers.

Can be transferred to:

  • Cash ISAs
  • Stocks & Shares ISA
  • Innovative finance ISA
  • Lifetime ISA

You can transfer between different providers.

Minimum age

You must be aged at least 16.

You must be aged at least 18.

How much can I save or invest?

The annual ISA allowance is £20,000 this tax year. You can choose whether you invest your full allowance into a stocks and shares ISA, save it in a cash ISA, use it in an innovative finance ISA, or split your allowance in any combination of the three types of ISA.

Alternatively you can split your allowance by investing up to £4,000 in a Lifetime ISA and the remaining allowance between any combination of the other three types of ISA, as long as you don’t exceed £20,000 in total across your ISAs.

The annual ISA allowance is £20,000 this tax year. You can choose whether you invest your full allowance into a stocks and shares ISA, save it in a cash ISA, use it in an innovative finance ISA, or split your allowance in any combination of the three types of ISA.

Alternatively you can split your allowance by investing up to £4,000 in a Lifetime ISA and the remaining allowance between any combination of the other three types of ISA, as long as you don’t exceed £20,000 in total across your ISAs.

Potential returns

Cash ISAs have an interest rate, which can be higher than a savings account. On closing your cash ISA, you’ll get back what you pay into the account, plus interest.

The value of your stocks and shares ISA may go down as well as up and you may get back less than you invested. However they can offer greater potential for growth than cash ISAs.

Overview


Cash ISAs

Cash ISAs are savings held in cash deposits.

You can contribute both a lump sum and regular payments.

Stocks and Shares ISAs

Offer access to different investment funds.
 
You can contribute both a lump sum and regular payments.

Transfer information


Cash ISAs

Can be transferred to:

  • Cash ISAs
  • Stocks & Shares ISA
  • Innovative finance ISA
  • Lifetime ISA

You can transfer between different providers.

Stocks and Shares ISAs

Can be transferred to:

  • Cash ISAs
  • Stocks & Shares ISA
  • Innovative finance ISA
  • Lifetime ISA

You can transfer between different providers.

Minimum age


Cash ISAs

You must be aged at least 16.

Stocks and Shares ISAs

You must be aged at least 18.

How much can I save or invest?


Cash ISAs

The annual ISA allowance is £20,000 this tax year. You can choose whether you invest your full allowance into a stocks and shares ISA, save it in a cash ISA, use it in an innovative finance ISA, or split your allowance in any combination of the three types of ISA.

Alternatively you can split your allowance by investing up to £4,000 in a Lifetime ISA and the remaining allowance between any combination of the other three types of ISA, as long as you don’t exceed £20,000 in total across your ISAs.

Stocks and Shares ISAs

The annual ISA allowance is £20,000 this tax year. You can choose whether you invest your full allowance into a stocks and shares ISA, save it in a cash ISA, use it in an innovative finance ISA, or split your allowance in any combination of the three types of ISA.

Alternatively you can split your allowance by investing up to £4,000 in a Lifetime ISA and the remaining allowance between any combination of the other three types of ISA, as long as you don’t exceed £20,000 in total across your ISAs.

Potential returns


Cash ISAs

Cash ISAs have an interest rate, which can be higher than a savings account. On closing your cash ISA, you’ll get back what you pay into the account, plus interest.

Stocks and Shares ISAs

The value of your stocks and shares ISA may go down as well as up and you may get back less than you invested. However they can offer greater potential for growth than cash ISAs.

Tax treatment depends on individual circumstances and may change in the future.


Halifax is a division of Bank of Scotland plc. Bank of Scotland plc, Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.