ISA (Individual Savings Account)

An ISA (Individual Savings Account) is a tax-efficient savings or investment account available in the UK. It allows you to put money aside without paying tax on the interest earned, dividends received, or capital gains. There are different types, like Cash ISAs for savings, Stocks & Shares ISAs for investments, and Innovative Finance ISAs for peer-to-peer lending. Each has annual contribution limits, and the main advantage is maximizing your savings or investments with tax benefits. ISAs are suitable for building savings, planning for future expenses, or growing investments securely within your annual limits.