Interest paid on a cash ISA is tax free and is suitable for short term savings – less than 5 years and interest is received on the savings at a fixed or variable rate.
A stocks and shares ISA is a tax-efficient way to invest in shares and securities for five years or more, and when you want to participate in the potential growth in the stock markets.
The Innovative Finance ISA allows lenders using online lending platforms, like Ablrate, to receive tax-free interest on their lending activities.
REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK
Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs.