Individual Savings Account (ISAs)

Flexible ISAs are not new products; they’re a new way in which some ISAs work. In a nutshell, with a flexible ISA you can take money out of your cash ISA and return it in the same tax year without reducing your annual allowance.

Inheritance ISAs are aimed at people whose partners had an ISA at the time of their death. The value of their combined ISA accounts at the time they died is added to your own ISA allowance.

The growing popularity of alternative savings and investments schemes, such as peer-to-peer loans and crowdfunding services, has led to the government creating a new ISA category: the Innovative Finance ISA.

Another option for first-time buyers saving for a mortgage deposit is a help to buy ISA. With a help to buy ISA you can earn up to 2.27%interest tax free, and the government will add 25% tax free to whatever is in your ISA when you use it to buy a home.

Launched in April 2017, the lifetime ISA is a government initiative to encourage people to save for their first home or their retirement. For every £4 you save, the government will add £1 (worth up to £1,000 a year) paid at the end of each tax year, up to the age of 50.

There are a number of different ways for parents to invest and save for their children, and one of the most popular ways is by putting money into a Junior ISA.

If you don’t mind taking a few risks with your money and you have the time to ride out any market fluctuations, putting some money into a tax-efficient stocks and shares ISA could be a smart move.

It’s estimated that 80% of the 12.5 million ISAs that have been opened are cash ISAs, and there’s a very good reason why they’re so popular: with a cash ISA, you don’t pay tax on the interest you earn.