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With stubborn saving over the years, your tax-free ISA can reach a mighty total. The UK’s most popular tax shelter is the Individual Savings Account, or ISA. Over 19 million of us have an ISA, which we use to keep our income and capital gains free from tax.

I say, I say, ISA
Although an ISA may appear complicated (and one in 10 young adults thinks it’s an energy drink!), it’s actually very simple. An ISA is simply a tax-free wrapper to keep investments away from the taxman. Inside your ISA, you can put money on deposit, or invest it in shares, bonds, index trackers or other funds - whatever takes your fancy.

Of course, there are limits as to how much you can put into an ISA. Each tax year (which runs from 6 April one year to 5 April the next), you can put up to £5,100 into a cash ISA. On top of this, you can put up to a further £5,100 into a stocks and shares ISA, for a total yearly limit of £10,200.

If you don’t want to save in cash, then you can put up to £10,200 into a stocks and shares ISA. Also, cash ISAs are available to UK residents aged 16 and over, but you need to be 18 or over to have a stocks and shares ISA.

Watch your ISA grow
As with all financial planning, it’s best to view your ISA as a long-term home for your savings. Indeed, if you can save for decades, then your ISA can grow into a handsome nest egg.