Individual Savings Accounts (ISAs) remain one of the most tax-efficient ways to save and invest in the UK.

Basic ISA Allowances for 2025/26

• Annual ISA allowance: £20,000 per person.
• Junior ISA allowance: £9,000 per child.
• Lifetime ISA limit: £4,000 per year, with a 25% government bonus for first-time homebuyers or retirement savings.

Types of ISAs

• Cash ISA: Safe, interest-based savings.
• Stocks & Shares ISA: Investments in shares, funds, and bonds — with potential for higher returns.
• Lifetime ISA (LISA): Designed for those aged 18–39 saving for a first home or retirement.
• Innovative Finance ISA: For peer-to-peer lending and alternative investments.