An ISA is an ‘Individual Savings Account’ which allows UK taxpayers to benefit from tax-free interest on their savings now and in the future- so any interest you earn is all yours.
Each tax year the government sets a maximum amount you can invest into an ISA. This can be split between a cash and a stocks and shares ISA. You can find details of this years’ ISA allowance here.
To have a cash ISA you must be a UK resident. For those who would like to invest into a stocks and shares ISA you must be 18 or over. You can only pay into one cash and one stocks and shares ISA each tax year as long as you do not exceed your ISA allowance.
Yes. From the 1 July 2014 ISAs became more flexible so not only can you transfer from a cash ISA into a stocks and shares ISA, but you can now also transfer money from your existing stocks and shares ISA into a cash ISA.
This recent change is important for those savers who have in the past used stocks and shares ISAs in an effort to receive improved returns, but no longer want to risk their capital investment and so would like to switch to a cash ISA.
When transferring an ISA you should always make sure you do it through an ISA transfer request with your bank or building society. Don’t try to do it yourself because your savings could lose its tax-free status, which applies now and in the future.
Our Easy Access cash ISA allows you to pay in and take out money whenever you need to. But remember, once you make a withdrawal, you cannot replace the money you’ve taken out in the same tax year. So if you’re looking to take advantage of the full ISA allowance you will lose that proportion of your allowance.
For example, if you open an ISA on 6 April 2016 with £10,000 you still have £5,240 left to pay in for the current 2016/17 tax year. Then three months later (still in the same tax year) you take out £1,000, you can still only pay in £5,240.
Unlike some other providers our accounts don’t include an introductory bonus rate or restrictions on the number of withdrawals you can make.
The tax-free interest rate is variable and can change over time but we’ll always tell you about any changes we make.