If you\u2019ve got money to invest, you may be wondering about the differences between stocks and shares ISAs and general investment accounts, and which is better for you. We\u2019ve rounded up the pros and cons to help you decide.<\/p>
An ISA (individual savings account) is a tax-efficient way of saving, with an annual contribution limit of \u00a320,000. Put simply, you usually don\u2019t need to pay tax (of any kind) on returns you make on money you put into an ISA.<\/p>
There are several different types of ISA. With a cash ISA<\/a>, for example, your money is put into a cash savings account that earns interest. With a stocks and shares ISA<\/a>, your contributions are invested into assets such as funds or, as the name suggests, stocks and shares<\/a>. Your returns will depend on the performance of the investments in your stocks and shares ISA (plus any fees you may need to pay along the way).<\/p>\n\n\n\n\n