What are ISAs?
ISA is short for ‘Individual Savings Account'. ISAs are tax-free savings and investments, which means all returns from your ISA will be free of both UK Income and Capital Gains Tax. This favourable tax treatment depends on the individual’s circumstances and may be subject to change in the future.
There are three types of ISA - cash ISAs which we offer, a stocks & shares ISA and an innovative finance ISA which we don't.
Cash ISAs – allows you to save money in a deposit based savings account
Stocks & shares ISAs - allow you to put money into a stock market-based investment, such as unit trusts, for the potential of greater returns. However, the value of investments in stocks and shares ISAs and the income from them may fall as well as rise and is not guaranteed, you may lose part or all of your investment.
Innovative finance ISAs - From 6 April 2016, lenders will be able to benefit from tax-free interest courtesy of the new innovative finance ISA (IFISA), which will cover loans arranged through peer-to-peer (P2P) platform
To save in a cash ISA you must be aged 16 or over and be resident in the UK for tax purposes. (Aged 18 for a stocks and shares ISA or innovative finance ISA.)
Accounts can only be held in a sole name, they cannot be opened as a joint account.
You are only allowed to subscribe to one cash and/or one stocks and shares ISA and/or innovative finance ISA per tax year therefore you cannot subscribe to a cash ISA with us if you have already contributed to another cash ISA using this tax year’s ISA allowance, or if you have already invested the full ISA allowance in a stocks and shares ISA or innovative finance ISA this tax year.
Please note once you have paid in your full allowance for the tax year, you can’t make any further payments until the next tax year, regardless of any withdrawals you might make.