ISAsThe ISA investment limits are as follows:
|ISA for shares and/or cash||£15,240||£20,000|
|Junior ISA and Child Trust Fund||£4,080||£4,080|
From 1 December 2015 first time buyers can open a help to buy ISA to help save for their first home. The Government will contribute a 25% bonus, up to £3,000 per ISA which is paid when the funds are used to buy the home.
From 6 April 2017 UK resident individuals aged between 18 and 40 may open a lifetime ISA to save up to £4,000 per year. The Government will contribute a 25% bonus up to £1,000 per year. The funds can be withdrawn from age 60 onwards or when the saver is terminally ill. The savings may also be used to help purchase the saver’s first home worth up to £450,000, after the account has been open for at least 12 months. The Government bonus will be lost if the funds are accessed for other purposes.
Premium BondsIndividuals may invest up to £50,000 in premium bonds. Any winnings are tax free. The odds of winning a prize for each £1 bond number are currently 24,500 to 1. The annual prize fund interest rate is currently 1.40% (December 2017). There are two £1m prizes and four £100,000 prizes per month.
See our helpsheet on individual savings accounts to see the rules on investing efficiently with ISA's.