What is the difference between a cash ISA, a stocks and shares ISA and an Innovative Finance ISA?

Interest paid on a cash ISA is tax free and is suitable for short term savings – less than 5 years. Interest is received on the savings at a fixed variable rate.

A stocks and shares ISA is a tax-efficient way to invest in shares and securities for five years or more, and when you want to share in the potential growth in stock markets.

The Innovative Finance ISA provides savers using Direct Lending platforms to receive tax-free interest. Direct Lending is when individuals lend to borrowers, usually through an online platform.