A tax-free account for saving or investing.
ISA (Individual Savings Account)
A tax-free account for saving or investing.
By Scrimpr
Updated 18 Jan 2026 What is an ISA?
An ISA (Individual Savings Account) is an account that shelters your money from tax. Any interest you earn, any investment growth, any dividends (payments companies make to shareholders). You keep it all.
How much can you put in an ISA?
Up to £20,000 per tax year (April to April). This limit is called your ISA allowance. You can split it across different ISAs, but the total can’t exceed £20,000.
Types of ISA
There are four main types:
- Cash ISA. A savings account that’s tax-free
- Stocks and Shares ISA. For investing in funds, shares, or bonds
- Lifetime ISA. For buying your first home or retirement, with a 25% government bonus
- Innovative Finance ISA. For peer-to-peer lending. Less common
Most people use Cash ISAs or Stocks and Shares ISAs.
Why use an ISA?
Outside an ISA, you might pay tax on savings interest or investment gains. Inside an ISA, you don’t. The bigger your pot grows, the more that matters.
Scrimpr’s ISA comparison covers more platforms than any other UK guide.
Compare ISA Platforms →Key points about ISAs
- Tax-free. No tax on interest, growth, or dividends
- £20,000 yearly limit, resets each April
- Different types for different goals. Saving, investing, or buying a home
More information
Scrimpr links to official sources so you can verify what you’ve learned.
