What is an ISA?

An Individual Savings Account, or ISA, is a  tax-efficient way to save and invest. There are two types – cash ISAs and stocks & shares ISAs.

Unlike a standard savings account, you won’t pay any income tax on the interest you earn in a cash ISA. And if your investment grows in value in a stocks & shares ISA, you won’t pay any capital gains tax on the increase. That’s why ISAs are popular with so many people.

Tax-free cash ISAs

A cash ISA is a type of savings account, with the same level of risk as a standard bank or building society savings account. But because it gives you the interest tax-free, it’s a great way to make the most of your money.

With a cash ISA, there’s no deduction of income tax if you’re a basic rate taxpayer. For every £1 you earn in interest, you’ll receive the full amount instead of income tax of 20p being taken first.

View our range of cash ISAs

Tax efficient stocks and shares ISAs

If you can leave your money for at least five to ten years, our stocks and shares ISA can be a great way tax efficient way of investing offering greater potential for growth than cash ISAs.

Our Stocks and Shares ISA is provided by Scottish Widows Unit Trust Managers Limited..

You need to remember that the value of a stocks and shares ISA can go down as well as up and you may get back less than you put in.

If you already have a stocks and shares ISA with another provider, you can move it over to us so that all your investments are in the same place. We can talk you through the potential benefits and help you to switch easily.

If you’d like to know more, book an appointment with a financial adviser. They’ll be happy to help.