There are 3 types of ISA: Cash ISAs, Insurance ISAs and Stocks & Shares ISAs. An ISA may also be referred to as a Mini or a Maxi ISA. The maximum amount you can invest annually is £7,000. This can either be invested in 3 separate Mini ISAs (£3,000 in a Cash ISA, £1,000 in an Insurance ISA and £3,000 in a Stock & Shares ISA) or all £7,000 can be invested into a Maxi ISAs.
The choice between one Maxi or three Mini ISAs probably depends on whether or not you wish to have a different manager for each of the three ISA components. If you do not, a Maxi ISA is likely to be more attractive.
Point to Watch: You cannot enter into a Maxi and a Mini ISA in the same tax year.
Tips: Putting your first investment of each year into an ISA makes the most of your tax-free allowance.
In addition to the above limits, the capital (but not the interest) from expiring TESSA accounts can be invested into some ISA accounts. You may be able to transfer shares from your employer's share scheme into a Stocks & Shares or Maxi ISA account.
The "CAT" Standard
The Government has introduced a set of standards to assist investors to identify investments that have reasonable Charges, easy Access and fair Terms. Meeting the CAT standard does not guarantee good performance nor does it indicate that a product is the best product in its category.
General
Cash ISAs
Insurance ISAs
Stocks and Shares ISAs
Maxi ISAs
