Saver's have four types of ISA's to choose from
An ISA is a tax-free savings account. There are two basic types: a cash ISA, which works like a standard savings account and a stocks and shares ISA. You can open a cash ISA if you live in the UK and are 16 and over. You have to be 18 to open a stocks and shares ISA. Each tax year – April 6 to April 5 – you get a fresh tax free ISA allowance. For 2017/18, this is £20,000, up from £15,240. You can pay into a cash ISA and a stocks and shares ISA at the same time. But you can’t pay into two cash ISAs or two stocks and shares ISAs in the same tax year. You can transfer any existing ISA to a different provider or move money from a cash ISA to a stocks and shares ISA and vice versa.
If you have a child you can save up to £4,128 tax free for them each year until they turn 18. At this point the junior ISA becomes a basic ISA. Your child has control of the money when they turn 16, but they can’t withdraw it until they are 18.
These can be opened by people who have lost a spouse or civil partner since December 2014. They allow you to transfer money from your partner’s ISA into your own without having to pay tax. This is in addition to the £20,000 allowance you get each year. For example, if your husband or wife had saved up to £50,000 into an ISA before they died, you can transfer this money into a new ISA – and then add a further £20,000 of your own cash. You have three years after their death to open an account and transfer the money or 180 days after the administration of the estate is complete, if later.
A new tax-free ISA savings account for under 40’s is available where you can save up to £4,000 a year and the Government will boost your savings by 25pc. For every £4 you save, the Government will give you £1 – but only until you are 50. You can withdraw your money at any point to buy your first home – or once you turn 60. If you pull out your money for any other reason, after the first year, you will lose the 25pc bonus.