ISA Savings

Let’s get down to the basics here.  What exactly are ISA savings and why should you be interested?

Let’s look at the latter point.  Why should you be interested?  Well, we figure you must be interested in this particular kind of saving otherwise you’d not have found our website already (and we’re very glad you did), but WHY should you be interested in ISA savings?  To us that is pretty simple, it is the best way in the UK to save your money without having to hand over a chunk of that money to the tax man every year.  In short ISAs (Individual Savings Accounts) save you money on your savings by avoiding the tax man.  And wouldn’t be interested in avoiding the tax man (without breaking any rules)?

As for the first, and most important issue, what are ISA savings?  In simple terms ISA savings are, as previously mentioned, a tax free haven for your money, but they can also be used for other investments such as stocks and shares.  There are in fact two kinds of ISA savings accounts you can have for each type of investment, namely Cash ISAs and Stocks and Shares ISAs, and thanks to their plain English naming conventions, it’s pretty straightforward to calculate which ISA is for which type of investment.

We look at the different types of ISA savings in more detail elsewhere, but whether you have cash isa savings or make a stocks and shares ISA investment (or both!), the money you earn in these ISAs is safe from the tax man, and that, once again, is why you should be interested in ISA savings.