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.
Compare the best cash ISA rates Make the most of your ISA Allowance
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