What is ISA (Individual Savings Account)?

An ISA is a UK account where you pay no tax on interest, dividends or capital gains. Money goes in after tax, there is one annual allowance shared across all your ISAs, and you can usually take money out at any time without losing the tax benefits. The main types are cash, stocks and shares, innovative finance and Lifetime ISAs.

Why ISA (Individual Savings Account) matters

Because withdrawals are tax-free and flexible, the ISA is the default tax shelter many UK savers use for goals of any length.

Related terms

• Stocks and shares ISA
• Lifetime ISA
• Junior ISA
• Tax-free growth

Lessons that use this term

• What is an ISA? Stocks and shares ISAs explained
• What is a SIPP? Personal pensions explained
• Tax-advantaged accounts explained

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