If you’ve ever doubted the use of having an ISA or other tax-free interest savings account, then this infographic will cast that doubt away.
A cash ISA is a type of UK savings account which allows the holder to save up to a certain amount in one tax year (the limit increases each year). Typically these savings are locked away for the duration although some ISAs do allow limited withdrawals if notice is given.
You don’t have to pay tax on any interest earned in an ISA, which makes them an attractive prospect, especially for higher rate tax payers.
This infographic was created on behalf of MoneySupermarket.com for the ISA channel and is available for non-commercial use.