Tax-free ISA investing
Millions of UK savers use ISAs as a safe home to grow their pot, tax free. Our ISA eligible municipal investments are a great option to add a low-risk income to your ISA, and every pound you invest will also help finance real projects that create a more thriving future for our places.
Build your tax-free pot with a stable long term income
For many ISA savers, the priority is finding a safe home for their pot that generates an income to keep pace with cost of living. Our municipal investments are a good option and can be held in an Innovative Finance ISA (IF ISA) - a low-risk investment paying competitive interest rates, similar to other fixed term cash ISA products.
They offer a different way to earn a stable ISA income, that also makes a real positive impact.
An ISA that makes our places nicer
Your ISA money could be doing more than earning a good return. Every pound you invest in an Abundance IF ISA will help fund real projects.
65
Projects financed so far
£9.6m
Spent on projects so far
An innovative way to use your ISA
There are a number of different types of ISA available, including Cash, Stocks & Shares, and Innovative Finance ISAs. Our municipal investments can be held in an Innovative Finance ISA.
You can currently deposit up to £20,000 each tax year into any mix of these ISAs with any providers*. You can invest in as many municipal investments as you want. The interest you receive back on your investments will go back into your ISA, alongside the repayment of your original investment, and be tax free. You can reinvest the money into new municipal investments to keep growing your ISA pot.
* Please note, the deposit limits are different for other types of ISA, and the rules on cash ISAs are changing from April 2027. Junior ISA contributions are not counted as part of your annual ISA allowance.
Benefits of ISA investing
Investing through an ISA offers a range of benefits for savers and investors. You can get more details on the ISA rules in our ISA help centre.
1
Invest up to £20,000 tax free
You get a new ISA allowance each tax year, which lets you deposit up to £20,000 and spread that money across different ISAs.
2
Open as many ISAs as you like
You can open multiple ISAs of any type with any number of providers each tax year, as long as you don't exceed your total allowance.
3
Transfer existing ISAs
If you have money in existing ISAs with other providers, you can transfer some or all of your ISA to an Abundance IF ISA to invest in municipal investments.
Flexible ISA benefits make it easier to manage your pot
Our Innovative Finance ISA is a flexible ISA. This means you can withdraw any uninvested money from your ISA and put it back into the same ISA later in the year without losing any of your allowance. Learn more about flexible ISAs.
IF ISA investing FAQs
When you invest, you are given the option of investing through an Innovative Finance ISA. If you haven’t set up an IF ISA with us before, you will be able to do so as part of the investment process. We’ll just need your National Insurance number.
No, our ISA is an Innovative Finance ISA. It is a way of investing in our municipal investments tax free. Cash ISAs are a cash savings product and not an investment, while a Stocks & Shares ISA lets you invest in stocks, shares and funds that are listed on the stock market.
No, these changes only impact Cash ISAs. From the 2027/28 tax year, the under 65s will only be able to deposit up to £12,000 per tax year into Cash ISAs. But our ISA is an Innovative Finance ISA, so it isn’t affected by this change and you can continue to deposit up to £20,000 (across all your ISAs).
No, investing through an IF ISA is just a way of getting tax-free returns. It does not affect the risk of the underlying investments you are making.
Yes, you can withdraw cash from your ISA free of charge, however you can’t withdraw money you have invested in municipal investments, as these are fixed term investments. Any money you withdraw will lose its ISA status (unless you return it to your Abundance IF ISA before the end of the tax year), so if you want to move the money to a different ISA provider, you can make an ISA transfer instead.
You can deposit up to £20,000 to invest into an IF ISA each tax year, but you need to stay within your annual ISA allowance across all ISAs you hold.
You can have as many ISAs as you like with different providers each tax year. But you need to make sure you do not deposit more than the total ISA allowance each year.
Yes, you can transfer cash from other ISAs to your IF ISA with Abundance to invest in councils. You can also transfer any uninvested cash in your Abundance IF ISA to another ISA provider if you wish. Learn more.
No, the ISA does not change the fact that our investments do not have FSCS cover. Learn more.