Income ISA
Tax efficient savings
An income ISA can provide you with an income in the form of regular tax free payments drawn from interest accrued on your ISA fund.
An ISA can be described as a tax free wrapper placed around your savings, protecting them from Capital Gains Tax and Income Tax, sheltering them from the taxman. Paying less tax could give a boost to any income that you receive.
There are two main types of Individual Savings Accounts (ISAs) available, cash ISAs, and stocks and shares ISAs (also known as investment ISAs). Both types of ISA may be used to generate an income and may be referred to as an income ISA.
When you put your savings into an ISA you will may be given the option of taking interest payments in regular installments as an income. With some ISAs, your fund must meet a minimum size requirement before you will be able to draw an income. You can usually choose whether you would like to receive you ISA income in monthly, quarterly or annual installments.
There is a limit to the amount that you can put into an ISA or income ISA each year. This is known as the ISA allowance, which is set at £10,680 for the 2011/2012 tax year. You may place up to £5340 of this allowance into a cash ISA, with the remainder available to invest in a stocks and shares ISA, or you may simply invest the full £10680 in a stocks and shares ISA.
When you invest in a stocks an shares income ISA you will need to assess how much risk you are willing to take, you will then need to choose your investments carefully in order to fit with your attitude to risk.
Investing your savings in an ISA can generate a regular income, shopping around and comparing the market will help you get the best deal for your savings. Compare popular stocks and shares ISA products using the table below, or visit the cash isa page to compare cash ISA options.
Selected Investment ISAs
| Provider | Product | Term
|
Minimum Investment
|
Capital Protected | More Info |
|---|---|---|---|---|---|
| Click More Info on the product you are interested in | |||||
 |
Dummy Product Name Investment ISA This is just a place holder - please ignore |
6 Years | £10,000 |  |
 |