Individual Savings Account. The key benefit of these accounts is that you do not have to pay tax on the income that you earn on your savings.

Income tax is the tax you pay on your income. You may obtain your income from your employment, from letting a property or from self-employment.

Inflation measures the changes in the prices of goods and services over time. For most goods and services, prices tend to increase with time.

When you save money in a savings account, you earn interest on the money you originally deposited and also on the interest that you earn.

The interest rate can also be considered as a price. When taking out a loan, the interest rate is the price of borrowing money. When depositing money into a savings account, the interest rate is the benefit provided by your savings.