An Individual Savings Account (ISA) is a tax-free "wrapper" that you are able to use to give tax-free status to three different product options listed below. Each product area has maximum contribution limit that restricts the amount that you can invest.
Stocks and Shares - This can either be set up as a self -select ISA where you choose the shares you want and manage them yourself. Or, most commonly, as a type of collective Investment Scheme where a Financial Services Company manages the Shares, Unit Trusts or Investment Trusts and buys the shares for you in line with a specific investment statement (purpose of fund, expectations etc). These come in a wide variety of funds and risk levels.
Insurance - In the main, this is a fairly straightforward, savings scheme placed in the tax-free wrapper. These are basically funds that are run by insurance companies and provide lower risk due to a more cautious choice of investment.
Cash - This is a deposit-based savings account with no risk to the original capital that you invested. Think of it as a normal savings account where you do not pay tax.
Click here to compare rates from over 200 ISAs listed. In some cases you will be able to invest online.
