Learn more about how ISA allowances work and how to transfer your existing cash ISA.
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 different types of ISA - cash ISAs which we offer, stocks and shares ISAs, innovative finance ISAs and Lifetime ISAs which we don't.
Allow you to save money in a deposit based savings account.
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.
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.
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 The funds can be withdrawn from the age of 60, or before that for the purpose of purchasing a first home.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.
The 2023/2024 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 2023/2024 tax-year
From 6 April to 5 April each tax year.
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.
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.
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.
You can make a transfer into one of our cash ISAs:
If you are transferring into a Fixed Rate 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.
You can make a transfer out of a Co-operative Bank cash ISA, either for part of the balance or 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.
We can only complete an ISA transfer in from an existing ISA, either held with us or another provider, once your Co-operative Bank cash ISA/Fixed Rate Cash ISA is open. So if you haven’t already got a Co-operative Bank cash ISA/Fixed Rate Cash ISA you’ll first need to apply for one before you request an ISA transfer in.
Once your account is open we’ll send you a Cash ISA Transfer Authority form with your welcome letter which you’ll need to complete and return to the address on the form. We’ll then get in touch with your existing ISA provider and complete the transfer on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.
If you already hold a Co-operative Bank cash ISA/Fixed Rate Cash ISA, and you want to transfer in the funds from your existing ISA, either held with us or another provider, you’ll need to complete a Cash ISA Transfer Authority form. This will need to be printed and returned to the address on the form. If you’re unable to print this, a copy would have been sent with your welcome letter or you can obtain a copy from any branch or by contacting us.
Once you return the form we’ll then get in touch with your existing ISA provider and complete the transfer on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.
Note: If you’re transferring in to a Fixed Rate Cash ISA this will need to be completed within 30 days from account opening. Please refer to your welcome letter or contact us if you’re unsure of when your 30 days started.
If you'd like to transfer more than one ISA into a Co-operative Bank cash ISA/Fixed Rate Cash ISA, you'll need to download an additional Cash ISA Transfer Authority form for each additional ISA you want to transfer.
If you wanted to transfer funds from two existing ISAs (held with other providers) into a Cash ISA, you'll need to download the Cash ISA Transfer Authority form and complete 2 forms – one for each existing cash ISA you want to transfer and return these to the address above.
For more information about transferring your ISA and the timescales ISA providers work to, visit the Government's website.
Remember you can subscribe to a Co-operative Bank cash ISA as long as you have not subscribed to another cash ISA with another provider in the current tax year.
AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and added to your account each year.
Business day is usually Monday to Friday excluding bank holidays.
Calendar month means from midnight on the first day of a month to 11.59:59pm on the last day of the month.
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.
Please note: any reference to tax is based on our understanding of current tax regulations which may change in the future and depend on the customer's individual financial circumstances.
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.
Not found what you're looking for?
Contact our support team