ISAs explained in 5 minutes
Updated
An ISA, or Individual Savings Account, is a wrapper that keeps your money out of 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) the ISA limit is £20,000. 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 does 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.
With a free account, Blooom keeps your figures and dates in one place. It's free.
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.
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