What is an ISA?

VIDEO: What is an ISA, what are all the different types, and which one is the best for you? We're back at the whiteboard to explain

Holly Black 11 December, 2020 | 11:36AM

 

 

Holly Black: Welcome to the Morningstar Investment Board. I'm Holly Black. Today, we are talking ISAs. ISA, Individual Savings Account, you've probably heard of it, you've probably got one, you might not realize there's about 50 types you can have, slight exaggeration. Why do you want an ISA? Well, it's tax free. So, any returns you make are not subject to the tax man, you can put up to £20,000 each tax year in there. So, tax year runs from April 6th to April 5th. Lord knows who first decided that. So, what type of ISA do you want. I don't know what you want, but I can tell you what you could have. So probably the most common type is a cash ISA. This can be opened by anyone aged 16 or over, it's super safe, you just give your money to a bank, or building society, and they'll give it back to you.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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