noun (plural TESSAs)
(In the UK) a tax-exempt special savings account allowing savers to invest a certain amount in a bank or building society with no tax to pay on the interest, provided that the capital remained in the account for five years (replaced in 1999 by the ISA).
More example sentences
- Tax-exempt investments such as Tessas and Individual Savings Accounts do not have to be notified to the tax authorities or included on any forms.
- Back in April 1999 the government introduced Individual Savings Accounts which replaced Peps and Tessas.
- Essentially, although tax-free Tessas have been replaced by Individual Savings Accounts, it is still possible to shelter money in accounts already opened.