ISAs Explained

What is an ISA?

ISA stands for Individual Savings Account. It is a special savings account introduced by the government to encourage UK residents to save. Interest earned on an ISA is tax-free.

What investment options does an ISA offer?

You can invest in two separate ISAs each tax year:

• A stocks and shares ISA
• A cash ISA

At Progressive we offer the cash ISA.

How do I open an ISA?

To open an ISA you must be aged 16 and a resident in the UK. If you are aged 16 or 17, you may invest in a cash ISA each tax year. If you are over 18, you may invest in a stocks and shares ISA or a stocks and shares ISA and a cash ISA per tax year.

You can open a cash ISA for as little as £10. You can add to this any time up to the yearly subscription limits (see subscription limit section below). You cannot subscribe to another cash ISA in the same tax year, although you may subscribe to a stocks and shares ISA.

This means that if you are married, you and your spose can each have an ISA. You will be given a passbook to help you keep a record of your transactions and to enable you to make payments into your account at any time.

ISA Subscriptions limits

Your total annual ISA allowance is currently £11,280. you can save up to £5,640 of this in a cash ISA with one provider. Your remainig allowance can be invested in a stocks and shares ISA with either the same or another provider. Alternatively, the full £11,280 can be invested in a stocks and shares ISA with one provider.

If you would like further information in the cash ISA, please get it touch using the Contact Us section of this website.