ISAs explained in 5 minutes
An ISA, or Individual Savings Account, is simply a wrapper that protects your money from tax. Any interest or investment growth inside an ISA is yours to keep, with nothing owed to HMRC.
The £20,000 allowance
Each tax year (6 April to 5 April) you can pay up to £20,000 into ISAs. You can split it across different types, but you can't carry unused allowance into the next year, so it's worth using before April.
The main types
A Cash ISA works like a tax-free savings account. A Stocks & Shares ISA lets you invest for potentially higher long-term growth (with more ups and downs). A Lifetime ISA adds a 25% government bonus for a first home or retirement, with rules attached.
As a way to picture the options: a Cash ISA suits money you'll need soon, while a Stocks & Shares ISA is aimed at long-term goals (with more ups and downs). Which fits depends on your own goals and timeframe. This is general information, not advice on which to choose.
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What Blooom watches for you here
Blooom keeps a running tally of your £20,000 ISA allowance across your wrappers, so you can see what's left before 6 April.
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This guide is general financial education, not personal advice. Always do your own research, and consider speaking to a regulated adviser for your specific circumstances.