What is an ISA?

Cash ISAs have similar features to savings accounts, but the interest you earn is tax-free. You're allowed to save up to your annual ISA allowance.

The allowance for the 2015/2016 tax year is £15,240.

• Choose from a range of ISA products designed to meet different needs:
  
  • Instant access - great if you need to be able to get to your money quickly
  • Regular saver - designed to help you save every month
  • Fixed rate - if you have a lump sum to save
• Choose to have a branch based, or online based ISA
• Not all ISAs end when the tax year does, so your money will continue earning you tax free interest as long as you've got the ISA.

Junior ISAs are tax efficient savings accounts designed to help you save or invest for your child's future. They encourage both parents and children to save, and the money is not available to the child until their 18th birthday.

Both junior cash ISAs and junior stocks and shares ISAs are available. Rafidain Bank offers a cash ISA called the Smart Junior ISA.

This tax year 2015/2016, the allowance is £4,080.

• Allows parents to start a tax efficient account for their child as soon as they're born
• The child can't access the money until they're 18, which means it's a great way to save for a house deposit or university fees

You can put your Stocks & Shares ISA allowance into a range of investments. Because they are held in the ISA, any gains you make are tax efficient. There's more on this in our guide to Stocks & Shares ISA.

The ISA allowance for the 2015/2016 tax year is £15,240.

• The potential returns can be higher than cash equivalents with the current low interest rates*
• Any gains you make are protected from capital gains tax, but there could be tax paid within the fund you have invested in
• No need to declare any investments that you have in a stocks and shares ISA on a tax return

• Investing should be be a long term savings plan and you should be comfortable with aiming to invest for a minimum of 6 years