ISA stands for Individual Savings Account, and there are 2 main types of ISAs available in the UK. These are:

1) Cash ISA
This is just a standard deposit account but you receive the interest tax free. There is also a limit of 3,000 that you can invest per tax year. You can also only have 1 Cash ISA per tax year.

2) Shares ISA
You can invest a total of 7,000 per tax year into a Shares ISA, assuming that you don't also have a Cash ISA.
If you have a Cash ISA, then the limit you can invest into a Shares ISA is 4,000 per tax year.
Shares ISAs are basically a way of investing in a stocks and shares index, and you benefit from the tax free status that ISAs enjoy.

ISAs are available from any bank or building society. You can apply for them online or alternatively via a branch. To research them, either go to a money comparison site or browse through a few bank sites. Information on them will be contained as part of the overall 'Savings' or 'Savings & Investments' parts of their sites.

You will then need to complete a standard application form, and provide your National Insurance Number as part of the application.

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