Individual Savings Accounts

Find the right ISA for you

An ISA (Individual Savings Account)will allow you to invest up to a certain limit during each tax year, and any interest you earn on the account is awarded tax-free.

2016/2017 ISA Rates

From 2016/2017, a tax-free allowance of £1,000 will be available to those people with a taxable income below the 40% tax threshold (an income of £42,700 in that tax year). This also includes basic-rate payers as well as non-taxpayers. Higher rate taxpayers will also be able to benefit from a lower allowance of £500. Additional rate taxpayers aren’t entitled to an allowance.

The 2016/2017 allowance is most generous to low earners, who will pay no tax on their savings where overall taxable income is less than £16,800 in that tax year.

There are different types of ISA available, allowing you to be flexible with the way you save.

Most providers will offer different types of account with fixed or variable rates, and various access options so shop around to see where you can get the most for your money

Comparison tables provided by Love Money

Cash ISA

If you are resident in the UK and over 16 years old, you will be entitled to open a Cash ISA. The limit to the amount you can save in the current tax year is £15,000 but will increase to £15,240 in 2015/16.
Cash ISAs are a safe way of investing your savings without any investment risks.
You can choose to invest a lump sum or pay in over a period of time as long as you keep within the upper limit. ISAs are flexible enough for you to withdraw your savings but do remember, that if you have already invested the full £15,000 you won't be able to pay in any more money until the new tax year.

Stocks & Shares ISA

If you are wishing to invest the full £15,000 during the year then you can do this with either a Cash ISA, a Stocks and Shares ISA or a combination of the two.

Stocks & Shares ISAs contain an element of risk as they are associated with the investment market but can potentially offer a greater return than a traditional savings account.

Junior ISA

Junior ISAs were introduced in 2011 as a tax-efficient way of young people saving for the future. The accounts are similar to a Cash ISA but available to anyone under the age of 18 and designed to help both children and their parents save.

The limit for a Junior ISA in the tax year 2015/2016 will increase to £4,080 (currently £4,000).

If you want to find out more about how to invest your savings in an ISA, read our comprehensive guides for more information, tips and advice.

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