What is an ISA?
 An Individual Savings Account, or ISA, is a
type of savings account that allows you to keep the interest
that your deposit
earns without having to pay for any associated taxes on those
earnings.
An ISA may be purchased from an ISA Manager.
This may be a bank, building society, investment broker,
insurance
company,
financial advisor or stockbroker. Even some supermarkets
offer ISAs.
A limit is set on the amount you are allowed
to save in a single year. When ISAs were formed in 1999,
the
maximum amount
a depositor
could save was up to £7,000 each tax year. This remains
true until the tax year for 2006/2007 when this will be lowered
to £5,000.
Three types of accounts
There are three different types of Individual
Savings Account currently available:
- Mini ISA
- Maxi ISA
- TESSA-only ISA
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Get financial advise...
If you are considering the purchase
of an ISA, be sure to consult with your accountant and an
IFA (Independent Financial Advisor). While an ISA Manager
will be able to give you information about ISAs, this is
usually limited to the particular products they are offering.
For a fair overview of your available choices, it is best
to obtain independent financial advice.
> learn
more...
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