ISAs or Individual Savings Accounts were introduced by the Government to encourage more people to save. Investing in an ISA allows you to shelter your money from the taxman as you can keep all the proceeds that you receive from that investment without paying income or capital gains tax.

You don't even have to declare your ISA on your tax return. The favourable tax treatment of ISAs may not be maintained in the future.

The overall investment limit is £10,680 from the tax year 2011-12.

There are two different types of ISA - Cash ISA & Stocks & Shares ISA.

You can invest up to a maximum of £5,340 in Cash ISA and additional £5,340 in Stocks and Shares ISA. You can also invest the maximum amount of £10,680 in Stocks and Shares ISA. LICI UK Steady Growth With Profit ISA is a Stocks and Shares ISA.

You can transfer your existing Cash or Stocks and Shares ISA to LICI UK Steady Growth With Profit ISA without affecting the allowance for the current tax year. However, you should keep in mind that the charges may be deducted by your existing provider. You can also transfer LICI UK Steady Growth With Profit ISA to another Stocks and Shares ISA provider. We will charge £30 for the transfer which will be deducted from the proceeds.