With any ISA account you can only deposit a set amount each year. That amount is determined by the government and can change with each new year. With an ISA the year doesn’t begin with January, it begins on April 6th and runs through April 5th of the next year. And, you need to keep this in mind when making your deposits so that you don’t surpass the yearly limit.

If your ISA account consists only of cash, the entire amount is tax free. This tax free incentive makes them very lucrative for anyone that wants to start a savings account. An ISA is a great way to keep a little more of your money in your pocket.

The second type of ISA account is one that only consists of stocks and shares. And, your third choice is one that includes both cash and stocks and shares.

However, if you’re opening an ISA account because you want a tax shelter, stocks and shares might not be your best choice. You’re still required to pay taxes on stocks and shares even when they’re in an ISA account.