An ISA is an Individual Savings Account and is not a product in its own right. An ISA is a ‘wrapper’ in which you can shelter savings and investments from tax.
There are multiple types of ISA available; a cash ISA, a stocks and shares ISA, an Innovative Finance ISA and a Help To Buy ISA.
The Lifetime ISA is available for those between 18 and 40. The Junior ISA is available to those under 18.
You can put money into an ISA, up to a set limit each tax year. This limit is known as your ‘ISA allowance’. Any returns or gains made from money placed in an ISA are not subject to income and capital gains tax. You don’t even need to declare ISAs on your tax return.