Types of ISA - Mini ISA & Maxi ISA

An ISA can be made up of an investment in cash, or longer term investments like stocks and shares or insurance. In each year you can either invest in one Maxi ISA, which can include all of these types of investments, or you can have two Mini ISAs - one for cash and one for stocks and shares, which can both include insurance.

Remember you cannot invest in both a Mini ISA and a Maxi ISA in the same tax year.

New rules recently announced will scrap the mini and maxi distinction and there will simply be a £7,000 maximum a year, with investments into cash ISAs subject to a maximum of £3,000 a year. Existing PEPs will also be renamed as ISAs, making it easier to manage an investment portfolio. It is thought these rules will be brought into effect in 2008.