tax-exempt accounts

Citizens of the United Kingdom (UK) have available to them a tax-privileged financial product that is referred to as an individual savings account (ISA). A cash ISA is a type of ISA that is used to hold cash, it is opposite to shares of stock. A cash ISA, earns interest tax-free up to a certain deposit amount.

First introduced in 1999

In 1999 cash ISAs were first introduced as a replacement for other types of tax-exempt accounts. They were designed such that they might be more accessible than the accounts they replaced, and so that they may benefit a wider range of people.

Another type of ISA

Per year only one cash ISA may be opened, although there is another type of ISA that is used in order to hold shares of stock, one of which may also be opened every tax year. Since the debut of the ISA there have been changes in limits placed on the balances of these accounts, and they will probably change again.

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Tagged as: comparison shopping, individual savings account, Interest Rates, ISA, tax shelter, tax-exempt accounts, transferring a cash ISA

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