Different types of treatment



ISA: This is shown as an Individual Savings Account and is different from a standard saving account as all the interest is tax-free. There are two types of ISA and they can be listed down the following as:

Cash ISA: low risk, tends to have instant access to cash

Investment ISA: higher risk, 5-10 yrs management/ admin charges


No tax on the interest paid on money saved in an ISA.

No capital gains tax paid on profit from share prices increases.

Higher rates of interest typically paid.


Better interest paying ISA accounts tend to require money to be locked in.

Withdrawn money cannot be put back into an ISA.

Not flexible as cash ISA to investment ISA is not vice versa.

Saving Account: These are specialised bank accounts that are designed to encourage people to save. They hold onto a high rate of interest than current accounts, the interests are shown as taxable.


Competition enables better rates to be offered.

Helps negate the implications of inflation.

Money can be easily accessed and inputted and withdrawn when required.


Lower interest rates…


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