What are the different types of ISA?

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“With HL, you can invest and save for every stage of life, tax free.

If you’re saving for your first home, there’s the HL Lifetime ISA.

You can open a Lifetime ISA between the ages of 18-39 and continue paying into it until your 50th birthday.

You can pay in up to £4,000 each tax year, and the government will add a further 25% as a bonus. So, for every £4 you save, you get £1 extra - up to £1,000 per tax year.

You can withdraw money in a Lifetime ISA to buy your first home. Or, you can hold onto it until you’re 60 and take the money out then for retirement, using the Lifetime ISA alongside any pensions you might have.

Any other withdrawals could result in a 25% government charge, so there is a risk you could get back less than you put in.

Cash savings are vital for life’s emergencies, and if you need the money in the short term.

The HL Cash ISA is a great way to earn interest without paying tax.

Through one online account, you can pick great rates from different banks, mixing and matching to suit your needs.

If you want something new, you can move available money between banks without new applications. It could be the only Cash ISA you ever need.

Once you’ve built up those emergency savings and you’ve got extra money to invest, you could consider a Stocks and Shares ISA for boosting your potential returns.

You can hold investments such as shares and funds, without having to worry about income or capital gains tax, although you should be comfortable that investing is higher risk.

You can withdraw your money at any time – but we do say investments should be held for the long term.

Each tax year you can add up to £20,000 into an ISA.

This is known as the ISA allowance.

You can spread this any way you like across Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs – so long as you don’t go over the overall limit.

There’s a separate ISA allowance for Junior ISAs.

For any little ones in your life, opening a Junior Stocks and Shares ISA could be a great way to give them a head start with their savings.

It allows you, as well as wider family and friends, to add up to £9,000 each tax year.

Your child can then access their Junior ISA once they turn 18.

We’ve got the UK’s best value Junior Stocks and Shares ISA, with no online dealing or account charges. Other charges could still apply, depending on which investments you choose.

Once your working days are done, ISAs can carry on working for you in retirement.

Although you might be less focused on growth, you can use Cash ISAs, Stocks and Shares ISAs or Lifetime ISAs to draw a tax-efficient income.

With all these ISAs at your fingertips with HL, we could be the only investment and savings platform you ever need."

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Important information:

This video isn’t personal advice. If you’re not sure what’s right for you or your child, you can ask us for personal advice.

ISA, pension and tax rules can change and benefits depend on individual circumstances.

Unlike cash, investments, and any income from them, are variable and can go down as well as up in value, so you could get back less than you invest.

The HL Cash ISA is provided by Hargreaves Lansdown Savings Limited, part of the Hargreaves Lansdown Group.