Finding an Individual Savings Account

The ISA, or Individual Savings Account, is made available to residents of the United Kingdom. These accounts mainly offer favorable tax advantages and come in three basic forms: the mini ISA and the maxi ISA and the TOISSA (with the last of the TESSA's in 1999)

The ISA can be of two types; Cash and Stocks & Shares. By limit, the account holder is restricted to investing in Cash and Stocks and Shares ISA over the course of the tax year. Where basically the income and dividends portion are considered tax free with these account vehicles. Although, stock and shares cash is assessed at a 10% credit. The cash portion is normally without charges while the stocks and shares assume fees comparable to that of non-ISA vehicles. And funds can be withdrawn anytime.

Any transfers from the current year must occur in their entirety. Transfers of anything less than the whole has to be from previous years. All transfers must be accomplished through the account manager, who can charge a fee for this administering.

In addition, residents must be at least 16 years of age and those under the age of 18 are limited to the use of cash only.

As of April 6th, 2010, the total allowable limit for investing in this way has been increased to £10,200. A number that is expected to increase with inflationary pressures. Out of this amount, £5,100 may be in the form of cash. While £10,200 may be in stock and shares, either with a single provider.

ISA's are commonly available through Financial Advisors, Savings and Investment firms, Banks and even at some supermarkets.

Special terms and risks do apply to these accounts so as always check for particulars with your broker or provider before investing your hard earned sums.

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