ISAs are the most powerful savings tool available to UK residents. Save up to £20,000/year — all growth, interest and dividends are completely tax-free, for life.
The Four Types of ISA
Cash ISA
Earns interest tax-free. Best for short-term goals or emergency funds. Currently paying up to 4.75%. Flexible Cash ISAs let you withdraw and replace in the same tax year.
Stocks and Shares ISA
Invest in funds, shares and bonds — all tax-free. Over 10+ years, global index funds have historically returned 8–10% per year, far outpacing cash.
Lifetime ISA (LISA)
Age 18–39 only. Save up to £4,000/year, get 25% government bonus (up to £1,000/year). Use for a first home (under £450,000) or retirement from age 60.
Innovative Finance ISA
Peer-to-peer lending. Higher potential returns, higher risk. Assets not FSCS protected — not recommended for most people.
New 2026 Rules
- Subscribe to multiple ISAs of the same type in one tax year (previously restricted)
- Partial transfers between providers now allowed
- Annual allowance remains £20,000 across all types combined
Compound Growth Calculator
Model your ISA savings growth over 10, 20 or 30 years.
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