An ISA, or ‘Individual Savings Account’ allows you to save money without paying tax on the interest you earn. This is because the Cash ISA has a favourable status from the Government. It’s their way of encouraging us all to save.
However, there is a limit on the amount you can pay into a cash ISA. This limit rises annually, every tax year, depending on the current rate of inflation.
You can save up to £15,240 tax-free in your cash ISA in 2015/16, and you won't have to pay any tax on the interest you receive.