UK ISA Types
Five HMRC-recognised Individual Savings Account wrappers, each with distinct rules, eligibility, and tax treatment. The overall £20,000 annual allowance is shared across them; the Lifetime ISA sub-limit and Junior ISA carry their own caps.
Cash ISA
Allowance: £20,000 · Risk: Low
Tax-free savings account paying interest. Best for short-term goals and emergency funds.
Stocks & Shares ISA
Allowance: £20,000 · Risk: Medium-high
Tax-free investment wrapper for shares, funds, ETFs. Best for long-term growth (10+ years).
Lifetime ISA
Allowance: £4,000 · Risk: Varies
25% HMRC bonus for first-time buyers or retirement at 60. Age 18-39 to open.
Junior ISA
Allowance: £9,000 · Risk: Varies
Tax-free savings for under-18s. Cash or Stocks & Shares variants.
Innovative Finance ISA
Allowance: £20,000 · Risk: High
Peer-to-peer lending wrapper. Higher yields but no FSCS protection.