Launched by the government in 1999, Individual Savings Accounts are designed to persuade people to save and invest by offering them a number of tax incentives. At the start of each tax year (6 April) everybody gets a new allowance which can be invested in two different types of ISA:
- Money ISA (cash ISA) allowance £5,100
- Shares ISA (investment ISA) up to the total allowance of £10,200
So while the maximum that can be saved in a money ISA is £5,100 the saver, if preferred, can invest the full allowance of £10,200 in a shares ISA.
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