A GUIDE TO SAVING AND INVESTING IN INDIVIDUAL SAVINGS ACCOUNTS (ISAs)

HOW MUCH CAN I SAVE OR INVEST IN AN ISA?

You can place up to £7,200 per tax year in an *ISA*. You can invest a lump sum, a series of lump sums or a regular amount (for example, £50 per month), but you must check with your ISA *manager*(s) as to the minimum amounts you can invest, as this will vary from company to company.

ISA LIMITS

You can invest up to £7,200 in an ISA over the course of the tax year.

The maximum you can invest in a stocks and shares ISA is £7,200. The maximum you can invest in a cash ISA in any tax year is £3,600. Therefore, you could choose to invest the entire allowance in a stocks and shares ISA or you could split it between a cash ISA and a stocks and shares ISA. For example, £3,600 in a cash ISA and £3,600 in a stocks and shares ISA or £2,000 in a cash ISA and £5,200 in a stocks and shares ISA.

You can now transfer money from cash to stocks and shares ISAs. If you move money from an existing cash ISA to a stocks and shares ISA it will not count as part of the £7,200 annual allowance. For example, you could transfer £10,000 from your existing cash ISA(s) to a stocks and shares ISA and invest a further £7,200 that year. You will maintain all your tax-free benefits on the £10,000. You cannot move money from a stocks and shares ISA to a cash ISA in the same way.