ISAs were introduced on April 1999. An ISA is a 'wrapper' which, under current legislation, allows your savings to grow free from income or capital gains tax (whatever your rate).

You can invest up to £7,200 each tax year. Up to £3,600 of your allowance can be saved in a Cash ISA with one provider. The remainder of the £7,200 can be invested in a Stocks & Shares ISA with either the same or another provider. Alternatively, the whole £7,200 can be invested into a Stocks & Shares ISA with one provider.

Money saved in Cash ISAs can be transferred into Stocks & Shares ISAs, but Stocks & Shares ISAs cannot be transferred into Cash ISAs

You can transfer part or all of your Cash ISAs from previous tax years to Stocks & Shares ISAs without affecting your current annual ISA investment allowance

You can transfer money saved in a current tax year Cash ISA to a Stocks & Shares ISA. Such transfers must be for the whole amount saved in that tax year up to the day of the transfer. Once such a transfer has been made you are free to save up to £3,600 in another Cash ISA provided it remains within the over all annual limit of £7,200

You can transfer some or all of your investments held in Stocks & Shares ISAs from previous tax years to a Stocks & Shares ISA with another ISA manager

You can invest a lump sum or set up a regular savings plan, or arrange for a combination of both methods of saving