ISA – 21 not out

When the Individual Savings Account (ISA) was launched in 1999, the allowance was £3,000 for a cash ISA or £7,000 for a stocks and shares ISA each tax year. Now at the grand old age of 21, the overall allowance has risen to a generous £20,000.

In the early days, choice was limited to either a cash ISA or a stocks and shares ISA, but the range has been extended over time and the total investment of £20,000 can be spread across different types of ISA. Any investment growth is tax free.