You may have read in the press about Individual Savings Accounts (commonly known as ISAs). An ISA allows you to invest your money in shares and not pay any tax on earnings. You are limited in how much cash you can put into an ISA, with the current limit being set at £7,000 per year.

There are two different types of ISA, known as the mini ISA and the maxi ISA.

With a maxi ISA you can invest up to £7,000 in stocks and shares. A maxi ISA must be taken out with one single provider. With a mini ISA you can place a maximum of £3,000 in stocks and shares, with up to £3,000 in cash and £1,000 in insurance. Mini ISAs can be taken out with a number of different providers.