Individual Savings Account is a special savings plan introduced by the UK government. This plan has been introduced to inspire the practice of savings among UK citizens. The excess money that the citizens have after they pay the tax can be invested in an ISA. The major benefit of this particular savings scheme is that the investor gets the advantage of income tax exclusion. The investor can withdraw money anytime he or she wants and there is no limitation on the amount that the person can draw.

One can come across two types of ISAs. You can either invest in Cash ISA or stocks and Shares ISA. If you choose cash ISA you can save up to six hundred pounds within a tax year. On the other hand going for Stocks and Shares ISA give you the opportunity to save seventy two hundred pounds within a tax year.

Different banks and financial institutes offer ISAs. You should shop around to choose the best ISA.

Benefits of ISA:

More and more people are opting for ISA because it has got several advantages. Let’s have a look at some of the benefits.

1.      The first and foremost benefit of Individual Savings Account is that the interest one gets is tax free.

2.      The investor can have easy access to the money invested.

3.      He or she can withdraw any amount at any time. However, many providers request the investors to send a notice before they withdraw the money.

4.      The requirement for opening balance is quite low.

5.      One can deposit as much money as he or she wants in the savings plane.

6.      One can deposit money any time of the year.

If you are a UK citizen, you should take advantage of this savings scheme and open an individual savings account to grow your money.