Summary

Learn more about how ISA allowances work and how to transfer your existing cash ISA.

What is an ISA?

ISA is short for 'Individual Savings Account'. ISAs are tax-free (the contractual rate of interest payable where interest is exempt from income tax) 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 different types of ISA - cash ISAs which we offer, stocks and shares ISAs, innovative finance ISAs and Lifetime ISAs which we don't.

Cash ISAs

Allows you to save money in a deposit based savings account.

Stocks and 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

Lenders can benefit from tax-free interest courtesy of the new innovative finance ISA (IFISA), which will cover loans arranged through peer-to-peer (P2P) platform.

Lifetime ISA

The lifetime ISA is available to people under the age of 40. Contributions of up to £4,000 can be made in each tax-year (a tax year runs from 6 April to 5 April the following year) and the government will then provide a 25% bonus on these contributions at the end of the tax-year. The funds can be withdrawn from the age of 60, or before that for the purpose of purchasing a first home.

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, an innovative finance ISA or a lifetime 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 and/or lifetime 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.

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.

ISA Allowances

The 2021/2022 ISA allowance is £20,000 and you can save any part of, or your whole ISA allowance in a cash ISA, a stocks and shares ISA, innovative finance ISA or a lifetime ISA, or any combination of the four.

The following information illustrates this:

In the 2021/2022 tax-year

From 6 April to 5 April each tax year.

Cash ISA

Up to £20,000 less whatever you deposit in a stocks and shares ISA, an innovative finance ISA and a lifetime ISA.

Stocks and shares ISA

Up to £20,000 less whatever you deposit in a cash ISA, an innovative finance ISA and a lifetime ISA.

Innovative Finance ISA

Up to £20,000 less whatever you deposit in a cash ISA, stocks and shares ISA and a lifetime ISA.

Lifetime ISA

Up to £4,000 contributions to a Lifetime ISA count toward the overall £20,000 ISA contribution limit.

Maximum total each year

Up to £20,000.

If you pay into a cash ISA, you will be subscribing to a cash ISA for the current tax-year and you will be limiting the amount of tax efficient savings you can make in a stocks and shares ISA, innovative finance ISA or lifetime ISA. Where you do not use your full ISA allowance within a tax-year, it cannot be carried forward into the next tax-year.

Transferring your ISA - points to consider

Remember, you can subscribe to a cash ISA with The Co-operative Bank so long as you have not subscribed to another cash ISA with another provider in the current tax-year. If you currently already have a cash ISA with another bank or building society, you can transfer it to us. The form to do this will be sent with your welcome letter after you have applied.

For further details about how to transfer your ISA please see the transferring your existing cash ISA sections below.

Or if you want to speak to someone about how you can make the most of your tax-efficient savings you can contact us or visit your local branch.

Transferring in

You can make a transfer into one of our cash ISAs:

If you are transferring into a limited issue Britannia cash ISA, please check with us that the product is still open for deposits, you can do this by calling us or visiting any branch.

Your cash ISA with your existing provider may have restrictions relating to ISA transfers out and you may wish to check this before requesting a transfer to us.

You will not lose the tax benefits provided you first open a cash ISA with us. We’ll provide you with forms to send to your existing provider to request the transfer or we can send them on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.

Transferring out

You can make a transfer out of a Co-operative Bank or Britannia cash ISA, either for part of the balance of the full balance:

Some of our ISAs have restrictions which may mean you incur a charge or loss of interest. The individual factsheets/pages will explain withdrawal arrangements within the summary box.

You will not lose the tax benefits provided you first open an ISA with another provider. Your new provider should then be asked to contact us to arrange the transfer. You must not withdraw the funds yourself to transfer as they will lose their tax-free status.

How to transfer your existing cash ISA to a Britannia cash ISA

Applying by post

To transfer an existing cash ISA account (held with us or another provider) to a Britannia cash ISA, all you need to do is complete a Britannia Cash ISA Transfer in Request Authority Form (PDF)* and return this to:

The Co-operative Bank
ISA Team,
Britannia House,
Leek,
Staffordshire Moorlands,
ST13 5RG

We'll get in touch with your existing ISA provider and take care of everything.

*This authorises your existing ISA provider to release the funds from your existing account.

Applying online

You cannot apply online for a Britannia cash ISA where you want to transfer in funds from another provider. You need to complete the ISA Transfer Application Pack and post it to us.

Transferring more than one ISA?

If you'd like to transfer more than one ISA account into a Britannia ISA account, you'll need to download an additional Britannia Cash ISA Transfer In Request Authority Form (PDF)* for each additional ISA account you want to transfer.

If you wanted to transfer funds from two existing ISA accounts (held with other providers) into a Select Access Cash ISA, you'll need to download an additional Transfer In Request Form for the second account.

Important Information - a reminder

  • The ISA Transfer Application Form, Transfer In Request Forms &/or Pack are to be sent to us.
  • Should you choose to take these forms to your local branch, you'll need your account or roll number for your existing ISA account. We'd suggest that you bring along either a recent statement or passbook for the ISA you wish to transfer to us.
  • Once your account is transferred we'll write to you to confirm.

Find out more about ISA transfers

For more information about transferring your ISA and the timescales ISA providers work to, visit the Government's website.

How to transfer your existing cash ISA to a Co-operative Bank cash ISA

To transfer an existing cash ISA account (held with us or another provider) to a Co-operative Bank cash ISA, all you need to do is complete the Co-operative Bank Cash ISA Transfer In Request Authority Form (PDF)*

(which is sent with your welcome letter or attached below) and return this to:

The Co-operative Bank, ISA Team, Britannia House, Leek, Staffordshire Moorlands, ST13 5RG – We’ll get in touch with your existing ISA provider and take care of everything.

*This authorises your existing ISA provider to release the funds from your existing account.

We can only complete an ISA transfer in request once your Co-operative Bank cash ISA is open, so if you haven’t got a Co-operative Bank cash ISA; you’ll need to apply for one before you request an ISA transfer in.

Transferring more than one ISA?

If you'd like to transfer more than one ISA account into a Co-operative Bank cash ISA, you'll need to download an additional Co-operative Bank Cash ISA Transfer In Request Authority Form (PDF) for each additional ISA account you want to transfer.

For example:

If you wanted to transfer funds from two existing ISA accounts (held with other providers) into an Online Cash ISA, you'll need to download the Co-operative Bank ISA Transfer Authority Form In Request Form and complete 2 forms – one for each existing cash ISA you want to transfer and return these to the address above.

Important Information - a reminder

  • The Co-operative Bank Cash ISA Transfer In Request Authority Form (PDF) is to be sent to us.
  • Should you choose to take these forms to your local branch, you'll need your account or roll number for your existing ISA account. We'd suggest that you bring along either a recent statement or passbook for the ISA you wish to transfer to us.
  • Once your account is transferred we'll write to you to confirm.

Find out more about ISA transfers

For more information about transferring your ISA and the timescales ISA providers work to, visit the Government's website.

What if I open a cash ISA, then change my mind?

You have a right to cancel your account, without giving any reason, for 14 calendar days from the date your account is opened or later depending on the terms and conditions.

It's important that you notify us if you change your mind, and don't simply close your ISA. If you close your account without notifying us that you have changed your mind, you will lose the tax-free status of previous tax-year's subscriptions and if you have paid any of the current tax years' subscription into the ISA, you will be unable to open a cash ISA with us or any other provider in the same tax-year.

When you cancel your account, we'll help you switch to another of our accounts, transfer your ISA to another provider or give you your money back, as you wish.

You can cancel by writing to us at The Co-operative Bank, ISA Team, Britannia House, Leek, Staffordshire Moorlands ST13 5RG or at any of our branches.

Remember you can subscribe to a Co-operative Bank/ Britannia Cash ISA as long as you have not subscribed to another cash ISA with another provider in the current tax year.

Savings terms explained

AER stands for Annual Equivalent Rate and shows what the interest rate would be if it were paid and added to your account each year.

Fixed interest means the rate stays the same until the account matures.

Gross is the rate of interest payable before any tax is taken off.

Tax-free means you will not pay any tax on your interest.

Tax year runs from 6 April to 5 April.

Variable interest means that it could go up or down.

Business day is usually Monday to Friday excluding bank holidays.

Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on the customer's individual financial circumstances.

The Co-operative Bank reserves the right to decline to accept any application and/or deposit.

FSCS logo

Financial Services Compensation Scheme

Your eligible deposits held by a UK establishment of The Co-operative Bank plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: The Co-operative Bank, Britannia and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered.

Please click here for further information or visit www.fscs.org.uk

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