20 things you need to know about ISAs

It's ISA season and we know you will be looking for all the tips you can get when it comes to the best options for saving!

 

Fortunately help is at hand - we're celebrating 20 years of ISAs by sharing everything ISA, from history to tips, to help you make the most of your tax-free savings. We're sharing something you might not know about ISAs for every year they've been available, so take a look at our list of things you need to know.

1. ISAs were first launched on 6th April 1999

 

2. ISA stands for Individual Savings Account

 

3. Interest earned on all Cash ISA savings are 100% tax free

 

4. From 6th April each year (to match the tax year) every person aged 16 or over receives an ISA allowance

 

5. For this tax year running from 6 April 2019 to 5 April 2020, the annual subscription limit is £20,000

 

6. An ISA can only be opened in a sole name – joint accounts are not permitted

 

7. You can have as many pots from previous years as you like – so if you first opened an ISA in 1999, you could have at least 21 ISAs if you opened a new account each year!

 

8. You need to be at least 16 years old to have an ISA (or 18 if you want a stocks & shares version)

 

9. If you are aged 16 or 17 you get a Junior ISA allowance of £4,368 in the 2019/20 tax year an adult cash ISA allowance of £20,000

 

10. The Junior ISA was launched on 1st November 2011

 

11. The Help to Buy ISA was launched on 1st December 2015

 

12. The Lifetime ISA was launched on 6th April 2017 to people who are aged 18-40

 

13. Since ISAs were launched in 1999 an estimated £8.74 trillion has been saved

 

14. As the ISA is tax free, this has saved the British public an estimated £30 billion in tax

 

15. There are 6 types of ISAs:

 

a) Cash ISAs

b) Stocks and Shares ISAs

c) Junior ISAs

d) Help to Buy ISAs

e) Lifetime ISAs

f) Innovative Finance ISAs

 

16. When launched in 1999 the yearly allowance for Cash ISAs was £3,000 – today it is £20,000

 

17. If someone had invested their full allowance each year in Cash ISAs since 1999 they would have saved a total of £141,520 not including interest!

 

18. Someone saving in a Junior ISA since they started in 2011 and investing the full allowance would now have £31,468 saved (not including interest)

 

19. ISAs are tax free and therefore every penny of interest earned on an ISA is yours to keep.

 

20. The Help to Buy ISA pays a government bonus of 25% of your savings up to a maximum of £3,000.

 

We'll update the list every Friday so keep checking back for the next batch of tips! Or follow us on Twitter, Facebook, LinkedIn and Instragram for a new daily tip sent straight to your feed.

 

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Do you want to make the most of tax-free savings? Here you can find a range of our ISA products which do not contribute towards your personal savings allowance.