What is an ISA and why should you have one?
Want to make your money work harder? ISAs could be your secret weapon.
Imagine watching your savings and investments grow without HMRC taking a slice. Discover the different ISA types, how to use them, and the best providers for people like you.
Frequently Asked Questions About ISAs
What is an ISA?
An ISA (Individual Savings Account) is a tax-free wrapper for your savings or investments, available to every UK adult. Any interest, dividends, or capital gains you make inside one are free from UK tax. You can hold cash, stocks and shares, or a mix, depending on which type of ISA you choose.
How much can I put into an ISA in 2026?
You can pay in up to £20,000 across your ISAs in the 2026 tax year. This allowance can be split across different ISA types - for example, some into a Cash ISA and some into a Stocks & Shares ISA - as long as the total doesn't exceed £20,000.
What is a Lifetime ISA (LISA)?
A Lifetime ISA is for UK adults aged 18 to 39, offering a tax-free way to save towards a first home or retirement. The government adds a bonus on top of what you save, making it one of the more generous ISA options if you meet the age and usage criteria. As of June 2026, the government has announced that it will be scrapping Lifetime ISAs (LISAs) and replacing it with a new product - First Time Buyer ISA (FTB ISA).
What is a Junior ISA (JISA)?
A Junior ISA is a tax-free savings account for under-18s, letting parents or guardians build a nest egg for a child without it being taxed. Like adult ISAs, it comes in cash and stocks & shares versions, and the money is locked away until the child turns 18.
Should I choose a Cash ISA or a Stocks & Shares ISA?
It depends on your goals and risk appetite. A Cash ISA suits short-term saving where you want certainty and easy access. A Stocks & Shares ISA suits longer-term goals (5+ years), where you're willing to accept investment risk in exchange for potentially higher tax-free returns.
What's changing for Cash ISAs from April 2027?
From April 2027, under-65s will only be able to put up to £12,000 of their £20,000 ISA allowance into a Cash ISA, down from the current limit. The remaining £8,000 must go into a Stocks & Shares ISA if you want to use your full annual allowance.
How do I choose the right ISA provider?
Compare providers on cost, investment choice, customer ratings, and independent scores rather than price alone. Boring Money's ISA comparison table lets you filter the full market side by side, and our Best Buy Awards highlight top-rated providers based on independent research, not industry nominations.
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