What is a Cash ISA?
A Cash ISA (Individual Savings Account) is a cash-only, tax-free savings account. It operates in a similar way to a standard savings account. However, there are a few key differences:
You don’t pay any tax on the interest you earn.
Interest on ISAs is paid tax-free. Tax treatment is dependent on individual circumstances, which may be subject to change in the future.
There is a limit to the amount you can deposit each year.
Your annual ISA allowance is the maximum amount you can deposit into an ISA each tax year. For the current tax year, the maximum you can deposit is £20,000.