Overview

ISA is short for Individual Savings Account, a type of tax free savings or investment scheme that the government introduced in April 1999 to replace Personal Equity Plans (PEPs) and Tex Exempt Special Savings Accounts (TESSAs).

They were introduced as a way of encouraging people to save money, with the main incentive being the fact that any growth in capital is tax free, be it through interest accrual or increases in the value of any underlying assets.

ISA's are essentially a wrapper that can invest in one of three things:

• Financial instruments, such as stocks, shares, unit trusts, and certain corporate bonds
• Cash
• Life assurance

Investors can put money into either:

• One maxi ISA per tax year, Or
• Up to three mini ISA's per tax year, providing each mini ISA invests in a different type of investment.

Section Guide:

• Who Can Open An ISA?: There are various rules and regulations that do restrict some people from opening ISA's, so have a look in this section just to be sure.
  
  
• Tax Advantages: ISA's are often popular because of the various tax advantages that come with them, browse this section to find out more.
  
  
• Mini V Maxi: Our brief comparison between Mini and Maxi ISA's.
  
  
• Investment Rules: There are various rules and regulations when it comes to investing and this section will help you to recognise what they are.
  
  
• Charges: Check out some information of the charges that you may have to face.
  
  
• Key Points: A quick guide to show the key points when it comes to considering a Cash ISA.

Tuesday, January 06, 2009