An alternative, but still tax efficient way to invest your annual ISA allowance can be with a stocks and shares ISA, which allow you to place your money in a variety of investments such as unit trusts and corporate bonds.
You can place up to £11,280 in a stocks and shares ISA each tax year, with the option to split your allowance by investing up to £5,640 in a stocks and shares ISA and the remainder in a cash ISA.
If you wish, you can also transfer previous years' cash ISA funds into a stocks and shares ISA without affecting your current year's allowance.
The key thing to bear in mind when considering a stocks and shares ISA is that by placing your money in trusts and bonds, the value of your investment can fluctuate and you may receive back less than originally invested.
A number of providers offer stocks and shares ISAs, including AJ Bell, Fidelity Worldwide Investment and Legal & General.
Always speak to a financial adviser prior to committing to a stocks and shares ISA to discuss your options and concerns and decide on the best type of investment for you.
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