ISA – Individual Savings Account
An Individual Savings Account – ISA for short – is a particular type of savings account which the government affords priveleged tax relief, in order to encourage people to save. The ISA is tax exempt on interest earned on savings or bonds, and also any capital gains on investments. However, there is a limit on how much money you can deposit in an Individual Savings Account each year. You can have either a Mini ISA or Maxi ISA, with the latter obviously meaning you can deposit more into it than with the Mini ISA.
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