individual savings account

(redirected from Cash ISA)
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individual savings account (ISA)

a SAVINGS scheme introduced by the UK government in 1999 to replace PERSONAL EQUITY PLANS which allows investors to secure tax-free interest and capital gains. ISAs provide for a maximum investment of £7000 per tax year. Initially, ISA investment was limited to stocks and shares growth and income funds. More recently, under ‘mini ISA’ rules up to £3000 can be invested in a mini stocks and shares ISA, up to £3000 in a mini cash ISA and up to £1000 in a mini insurance ISA. In the case of ‘maxi ISAs’ the above allowances still apply with the exception that it is possible to invest all £7000 in stocks and shares. See PORTFOLIO, TRACKER FUND.

individual savings account (ISA)

a SAVINGS scheme, introduced by the UK government in 1999 to replace PERSONAL EQUITY PLANS, that allows investors to secure tax-free interest and capital gains. ISAs provide for a maximum investment of £7,000. Initially, ISAs covered only stocks and shares but have been extended to include other assets, specifically cash and insurance. Under ‘mini ISA’ rules, up to £3,000 can be invested in a mini stocks and shares ISA, up to £3,000 in a mini cash ISA and up to £1,000 in a mini insurance ISA. In the case of ‘maxi ISAs’ the above allowances still apply with the exception that it is possible to invest all £7,000 in stocks and shares. See PORTFOLIO, TRACKER FUND.