Individual Savings Accounts (ISAs)

ISAs are tax-free investments that replaced PEPs and TESSAs. Any UK resident who is over 18 can have an ISA (although cash ISAs up to the value of £3,000 are also available to 16 and 17 year olds).

ISAs can be made up from one or more elements:

1. Savings accounts (cash).
2. Life insurance.
3. Share-based investments.

A MAXI ISA means that all elements are contained within a single ISA, whereas a MINI ISA means that elements are kept within separate ISA accounts.

The maximum you can invest in an ISA is £7,000.

The government has guaranteed ISAs to run until 2009.

This page was last reviewed on 03 April 2006.
The information may not reflect changes in legislation made after this date.

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