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What is an ISA?

An Individual Savings Account (ISA) is a tax wrapper that allows you to save, either in cash or stocks and shares, without paying any tax on the money in the wrapper. This includes any returns/growth is tax-free. (This is not the case with an ordinary bank or building society account unless you are a non-taxpayer.)

The Government tends to review and often increases the annual ISA allowance each year.  For the 2018/2019 tax year is £20,000 per adult over 18 years.

There are two types of ISA: cash ISAs, and stocks and shares ISAs. SCM Direct does NOT offer cash ISAs.  Stocks and shares ISAs tend to be appropriate for investors looking for a longer term investment product where they can leave money untouched for five years plus.