What are the components Individual savings accounts(ISA)? Which one to opt?

There are three different ISA components that you can invest your money in, allowing a great deal of flexibility when it comes to saving your money in an ISA. Each of these may be more or less suitable for you depending on the type of savings you are after, and how long you plan to save.

      Cash ISA

Cash ISAs are typically more suited for short-term borrowing so that you can access your money quickly and easily. Stocks and Shares ISA

A Stocks and Shares ISA may be suitable for you if you want to leave your money in your savings account for a longer period of time, typically more than 5 years. However as with all stocks and shares dealing the value of your ISA may go down rather than up and you are not guaranteed a profit. Stocks & Shares ISAs also come in various forms, the two most common being the Tracker and Self-Select.

Tracker Stocks & Shares ISAs invest in the shares of one or more stock market indices. This allows them to follow the stock market index as closely as possible. Most of these funds are entirely automated.

Self-Select ISAs allow you to choose which stocks and shares you invest in from an approved list and is used mostly by people who want to invest directly in shares. Life Insurance ISA

Life Insurance ISAs are similar to Stocks and Shares ISAs, but also come with some form of life insurance coverage. As with Stocks and Shares ISAs you are not guaranteed to make a profit and you may get less back than you put into the ISA.