Isa’s have become a popular savings account of choice for anyone looking to save money and increase their interest without paying capital gains tax.

With two major types of Isa’s available through various financial institutions, it is advised that you do your research before jumping in full steam ahead, only to find out that this is not the savings account you were looking for.

The first is cash Isa’s, this enables you to deposit cash and use it as a savings account.  You can withdraw from it at any time, but remember that you can only reinvest your money if you haven’t used your full annual allowance.

The second is the stock and shares Isa’s; this enables you to invest in various stocks and shares to increase your account funds.  If you invest wisely, you can benefit greatly but bear in mind that this is a risk as with any investment and you may find yourself losing a few times over the year.

For both the Isa’s offered you need to be over eighteen years old.  The bonus to the Isa’s investment is that you don’t pay any capital gains tax on interest or profits made.  It really is the most tax efficient savings plan available on the market today.