An Individual Savings Account (ISA) is a tax-efficient savings and investment account available to residents of the UK. It allows individuals to save or invest money without paying tax on the interest, dividends, or capital gains earned within the account. There are different types of ISAs, including cash ISAs and stocks and shares ISAs, catering to various saving and investment preferences. Each tax year, there is a limit on how much money you can contribute to your ISA, known as the ISA allowance. This limit can change annually, so it's important to stay informed. ISAs are a popular choice for those looking to grow their savings while minimizing tax liabilities.