ISAs represent a tax-efficient container into which to place cash savings and investments in equities, bonds, collectives (see below) and insurance policies.

Currently, the maximum subscription into ISAs is £10,200 for people aged 50 or over and £7,200 for everyone else in any one tax year. An individual can invest in two separate ISAs covering Cash, (maximum £5,100 for people aged 50 or over and £3,600 for everyone else), and Stocks and Shares, (maximum £10,200 for people aged 50 or over and £7,200 for everyone else, less what has been invested in cash). From 6 April 2010, the ISA limit will increase to £10,200, up to £5,100 of which can be saved in cash, for all ISA investors.

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