Individual Savings Accounts (ISAs)

How much can I put into ISAs?

In each of the tax years up to 2005-06 you can put in up to £7,000. You can then put in up to £5,000 in each subsequent tax year from 2006-07. A tax year runs from 6 April to 5 April the following year. The reduction from £7,000 to £5,000 after 5 April 2006 is subject to consultation.

Up until 5 April 2005, you can put money into any of the three components of a Maxi ISA. If you do not put the maximum allowed into the cash or life insurance components (where they are offered by the Maxi ISA), you can put the excess into the stocks and shares component.

After 5 April 2005, you can put money into either of the two components of a Maxi ISA. If you do not put the maximum allowed into the cash component (where it is offered by the Maxi ISA), you can put the excess into the stocks and shares component (which will include qualifying life insurance policies).

With Mini ISAs the limits are fixed. For example, even if you put nothing into a Mini cash ISA during the year, you could still only put £3,000 into a Mini stocks and shares ISA.

This table shows how many ISAs you can have and how much money you can put into each.

The options in a tax year Total investment allowed a year up to 2004-05 Total investment allowed in 2005-06 Total investment allowed in 2006-07* and subsequent years One Maxi ISA Up to £7,000 but no more than £3,000 in cash and £1,000 in life insurance Up to £7,000 but no more than £3,000 in cash Up to £5,000 but no more than £1,000 in cash Up to three Mini ISAs reducing to two after 5 April 2005 £3,000 maximum in stocks and shares ISA £3,000 maximum in cash ISA £1,000 maximum in life insurance ISA £4,000 maximum in stocks and shares ISA (which includes life insurance) £3,000 maximum in cash ISA £4,000 maximum in stocks and shares ISA (which includes life insurance) £1,000 maximum in cash ISA

* The reduction from £7,000 to £5,000 after 5 April 2006 is subject to consultation.

Whether you choose a Maxi or a Mini ISA in any year is up to you, but remember

• if you want to invest more than £3,000 in stocks and shares (or £4,000 after 5 April 2005), you must open a Maxi ISA
• if you want different ISA managers for different kinds of saving, you will need Mini ISAs
• always shop around for the arrangement that will give you the best deal or is most convenient.

The Mini cash ISA
The Mini stocks and shares ISA
The Mini insurance ISA
The changes at 6 April 2005