Hello, I am Clare, Savings and Investments Director at Smart Investor, and I am going to explain how much you can save in an ISA. Please be aware though that we can not offer personal advice so if you do not feel confident about making an investment decision on your own, do seek independent financial advice.
Every tax year, which starts on the sixth of April, each of us has an annual ISA allowance. This is the maximum amount you can put into ISAs that tax year. And for the current tax year the ISA allowance is £20,000.
You do not have to invest this amount all at once, though and you do not have to use the full allowance. Just put away what you can afford. You can choose to pay in a lump sum or several lump sums over the year, but you can also choose to make regular smaller contributions every month.
There are several different ISAs to choose from. You can invest the whole sum in a cash or investment ISA, or you can split it between a cash investment innovative finance and lifetime ISA. However with a lifetime ISA, the maximum allowance is lower at £4,000 and you can only open one if you are under the age of 40.
If you would like more detail about the different types of ISAs and how they work, or just to find out more about investing, visit our website, as there are loads of videos there to help.