What is an ISA?

What exactly is an ISA?

It is an Individual Savings Account. ISAs were launched to UK residents by the Government in 1999. They help protect your savings and investments from the taxman. You can save up to £7,200 in each tax year and make cash deposits, invest in stocks and shares, or both.

A tax year runs from April 6th one year to April 5th of the following year.

Currently, there are two types of ISA: a Cash ISA and a Stocks and Shares ISA.  In one tax year you can invest a total of £7,200.  Up to £3,600 per tax year could go into a Cash ISA with the balance, up to the overall £7,200 annual allowance, available to invest into a Stocks and Shares ISA. 

From the 6th April 2008, you will be able to transfer your Cash ISA to a Stocks and Shares ISA.  Investors who transfer current years' cash ISA subscriptions to a Stocks and Shares ISA can then save their full £3,600 cash allowance in another Cash ISA in the same tax year.

Please note that the rules will not allow you to transfer a Stocks and Shares ISA to a Cash ISA.

Which ISA will suit you best?

If you want to save for less than five years, might need to dip into your funds occasionally or just want tax-free earnings on your 'rainy day' savings, consider a Cash ISA

If you want to invest for at least five years to build money over a longer term or for an income in the future, then take a look at our Self-Select Stocks & Shares ISAs

Why choose a Halifax ISA?

We're the UK's No.1 for ISAs. We have expertise, experience and a range of ISAs to suit your needs.

Source: GfK NOP Financial Research Survey (FRS), based on number of holders