ISA savings accounts
If you pay tax, at least 20% of any interest you earn (40% if you pay higher rate) go directly to the tax man. So, if you have any savings or investments, you should have Individual Savings Account (ISA). It saves tax and increases returns. There are 2 types of ISA - Cash and Stocks and Shares. Cash ISA is a basically savings account that provides a very good interest rate and allows to save to save up to £7,200 per tax year (2008/09) without having to pay tax on interest earned over that period. Stocks and Shares ISA may involve investment funds, trusts, shares, bonds, and life insurance policy. As with any other investment, there is a risk not to get all your money back.