Why an ISA?

Bank accounts are a good idea for emergencies and short-term savings. However, if you already have that covered and are looking for a potentially greater return on your money, consider investing in the stock market with an ISA. Of course, stocks and shares are not as secure as bank accounts and by seeking the potential for capital growth you are increasing your chances of losing money. Stocks and shares ISAs are long-term investments and ideally, should be kept for a minimum of 5 years. Keeping an ISA for a short period of time will increase the likelihood of losing money. You can invest up to £7,200 in an ISA for the tax year 2008/9, provided you have not already made an ISA investment, and for the tax year 2009/10. The application form provides you the opportunity to invest for both tax years if you wish.  more