NS&I - Cash ISAs

A cash Individual Savings Account (ISA) is similar to a savings account that pays interest, but the interest your money earns is tax-free. The term Individual Savings Account (ISA) refers to a whole range of tax-efficient savings products. Cash ISAs are one of the most popular cash savings accounts as they allow you to invest up to £5,340* per tax year, giving you guaranteed tax-free interest.

Are cash ISAs right for you?

Yes, they might be right if you:

• want a simple, low-risk tax-efficient way to save

• are a UK resident for tax purposes aged 16 or over

• expect to be investing £5,340* or less each year

• can leave the money invested to maximise tax efficiency

No, they may not be right if you:

• are not a UK resident for tax purposes aged 16 or over

• think you might need access to your money on a regular basis

• are not likely to ever be a taxpayer

*Figure applies to 2011/12