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Individual Savings Accounts (ISAs) are tax-efficient savings and investment accounts available to residents in the UK. They are designed to encourage individuals to save and invest by providing various tax advantages. The main advantage of ISAs is the tax-free growth and income they offer.
Cash ISAs are similar to traditional savings accounts, where individuals can deposit money and earn interest tax-free. Stocks and shares ISAs allow individuals to invest in a wide range of assets such as stocks, bonds, funds, and other investment vehicles, with any returns being free from income tax and capital gains tax.