Individuals can invest in two components of a Mini ISA each financial year - Cash and Stocks & Shares.

For the risk averse or for those only wanting a Cash ISA from a building society or bank this will be the favoured option.

Another advantage of a Mini ISA is that it provides greater flexibility allowing individuals to invest in a Cash ISA with, say, a building society and a Mini Stocks & Shares ISA with a company that specialises in equities. 

MINI ISA limits
STOCKS & SHARES – up to £4,000
CASH – up to £3,000

Examples:

Mr S Aver has £7,000 he wishes to invest in a Mini ISA. He has to split his savings as follows £4,000 in Stocks & Shares and the remaining £3,000 as Cash.

Mrs S Aver on the other hand only has £3,000 and being more risk averse, simply puts her savings totally as £3,000 Cash ISA.