Help Desk

Individual Saving Accounts (ISAs)

Individual Savings Accounts (ISAs) were introduced by the Government to encourage more people to save for the future. To help with this, no tax is charged on the interest earned in an ISA, making them a very effective way to make your money grow.

ISAs are designed to give you more choice, which is why there are two types:

Cash ISAs

A Cash ISA allows you to save money in a simple savings account. You can make deposits whenever you have some money to spare. You can save up to £3,600 in a Cash ISA in each tax year.

There are no account charges and you have instant access to your money should you need it. However, before taking funds out of your account, it's worth remembering that withdrawals can't be replaced. For example, if you make the maximum £3,600 investment during the current tax year and then decide to take out £1,000, you won't be able to pay that money back in later on during that year because you will have already reached your annual £3,600 limit.

Stocks and shares ISAs

A Stocks and Shares ISA allows you to put money into a stock market linked investment, such as unit trusts.

If you have more than £3,600 to invest, it could be worth considering a Stocks and Shares ISA.

The value of investments in Stocks & 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.

How much can you invest?

Your total annual ISA allowance is £7,200. Up to £3,600 of this can be in a cash ISA, and the remaining amount can be put into a Stocks and Shares ISA.

However, if you invest less than £3,600 in a Cash ISA you can invest more in a Stocks and Shares ISA providing your total investment is not more than £7,200 in each tax year.

How will interest be paid?

A tax year runs from 6 April to 5 April the following year and interest is paid directly into your account after we close for business on 5th April each year.