Tax and savings /

ISAs explained

In April 2008, the Government introduced new rules for ISAs. Now, each person has an annual investment limit of £7,200, of which up to £3,600 can be invested in a cash ISA.

You can split your ISA investment any way you like, as long as you don’t invest more than £3,600 in cash and more than £7,200 in total. For example, you could invest £2,000 in a cash ISA, plus £5,200 in a stocks and shares ISA.

The minimum age for investing in a cash ISA is 16; for a stocks and shares ISA it’s 18.

What happens to your existing ISAs?

If you own a mini cash ISA or a TESSA-only ISA it will become a cash ISA. The cash component of a maxi ISA will also become a cash ISA.

If you own a mini stocks and shares ISA, it will become a stocks and shares ISA, as will the stocks and shares component of a maxi ISA.

You can now transfer the money saved in a cash ISA to a stocks and shares ISA, even if it was saved in previous tax years, without affecting your annual ISA allowance. Speak to your ISA provider to find out how.

NS&I ISAs

Both of the ISAs we offer – the NS&I Cash ISA and the NS&I Direct ISA – are cash ISAs, so you can only invest in one of them in each tax year. NS&I doesn’t offer a stocks and shares ISA.