💡
ISAs Pros Normally any interest you earn from your cash savings is taxed at the same rate as your salary is taxed. A cash ISA (short for Individual Savings Account) is a type of cash savings account that allows you to earn interest tax-free. (You can also save into a stocks and shares ISA, more in the investment chapter.) When interest rates are so low, and savings sums small, taxable interest does not usually amount to much, PS2 on interest of PS10, for example, but if you are saving a large sum, for a house deposit, for example, it can add up. You can save in easy-access or fixed-rate ISAs. Cons ISAs have an annual limit on the amount you can save into them, which usually changes each year, but it is generous: PS20,000 in the tax year 2018-2019.