What is an ISA?

An ISA is an Individual Savings Account. If you save in an ISA you are entitled to keep all that you receive from that investment and not pay any tax on it. This is not the case with, for example, an ordinary bank or building society account unless you are a non-taxpayer.

ISAs began on 6 April 1999 and will be around for the foreseeable future. You can save up to £15,240 in the tax year 2015-16. A tax year runs from 6 April to 5 April in the following year.

You can put money in and take it out whenever you want.

The ISA scheme provides different ways of saving to meet people’s different needs. You can plan for the short term, or put your money away for much longer for example as an alternative to pensions.