ISAs in a nutshell

Tax-free saving – what are ISAs?

ISA stands for Individual Savings Account.

With a standard savings account you pay tax on the interest you earn. With ISAs you don’t. You keep all the interest. Every penny.

Are there different types of ISAs?

Yes. There are six main types of ISAs:

  • Cash
  • Junior cash
  • Stocks and shares
  • Innovative Finance
  • Help to Buy
  • Lifetime

Who can open one?

You have to:

  • be 16 or older (18 for stocks and shares ISAs)
  • be a UK resident
  • have a National Insurance number

How much can I put into an ISA?

There’s a limit on how much you can put into ISAs during each tax year. This is called the annual ISA allowance. The tax year runs from 6 April to 5 April and for 2019/20 you can put in up to £20,000.

Which ISAs do TSB offer?

We provide the simplest types – cash ISAs and junior cash ISAs. You can see them here.

Can I have more than one ISA?

Yes. You can have up to two cash ISAs. If you’ve already opened an ISA this year you can transfer it over to us.

Can I carry over my ISA allowance to the next tax year?

No. If you don’t use your annual ISA allowance within any given tax year you can’t carry it over. However, a new allowance kicks in at the start of every tax year. The tax year always ends on 5 April, so you have until then to make the most of your allowance.

 

TSB guide to ISAs Infographic

 

Cash ISAs

What are cash ISAs?

Cash ISAs are the simplest and most popular ISA. They’re not that different from other savings accounts, except you don’t pay tax on any interest. And like other savings accounts there are a few to choose from.

If you’re happy to put your money away for a bit of time, fixed term ISAs tend to give you better interest rates. If you decide to take your money out early, you may have to pay a withdrawal charge.

If you prefer having the freedom to withdraw your money whenever you want, instant access ISAs might be right for you.

Does TSB offer cash ISAs?

Yes. In fact, we’ve got a few for you to choose from.

Fixed Rate Cash ISAs

We have three fixed rate ISAs. The longer you fix for the better the rate.

  • 18 month 0.99% Tax-free Monthly/1.00% AER (fixed)
  • 2 Year 1.05% Tax-free/AER (fixed)
  • 3 Year 1.30% Tax-free/AER (fixed)

All of these ISAs come with a competitive interest rate. Just remember, you’ll need to pay in at least £3,000 within 30 days of opening one of these ISAs. Find out more.  Interest paid on anniversary of account opening. Withdrawal charges apply.

Cash ISA Saver

Our Cash ISA Saver offers instant access and is great if you want to get at your money whenever you want it. You get a 0.30% AER interest rate, tax-free. On top of that you get a 0.30% bonus for the first 12 months, tax-free. Find out more.

Interest is calculated daily and paid once a year on the 31st March. No withdrawal charges apply.

Junior Cash ISA

A parent or guardian can open a Junior Cash ISA for a child. The child can take control of their ISA at 16, but they can’t take money out until they’re 18. So, it’s a great way to get your kids on the savings ladder. Just bear in mind the junior ISA limit is lower than the adult one – for the 2019/20 tax year it’s £4,368.

Our Junior Cash ISA pays a variable rate of 3.25% AER, tax-free and you can start one with as little as £1.

Interest is calculated daily and paid once a year on the 31st March. No withdrawal charges apply.

 

Other types of ISAs

What’s are stocks and shares ISAs?

As the name suggests, stocks and shares ISAs are invested into the stock markets. It’s usually managed by a fund management group, so there’s often a management fee. The returns can be good, but because you’re investing in the stock markets there’s more risk and they’ll tend to be longer term than cash ISAs.

What are Innovative Finance ISAs?

Innovative Finance ISAs lend to private borrowers or take a stake in a crowdfunded investment. The returns can be high, but as with all investments, they can be risky.

What are Help to Buy ISAs?

Help to Buy ISAs are designed to help first time buyers to get on the property ladder. There’s a maximum amount you can put in, but it’s a great way to save for a deposit – because the government will boost your savings by 25%. You can save up to £200 a month. So, you could get up to £50 a month from the government to top up your savings.

What are Lifetime ISAs?

These are aimed at savers under 40. As with the Help to Buy ISAs, the government will boost your savings by 25%. So, if you pay in the yearly maximum of £4,000, you’ll get a £1,000 bonus each year. You can use a Lifetime ISA to buy your first home or keep the money until you’re 60.

 

Moving your existing ISAs

Can I move a cash ISA?

Yes. You can even transfer a stocks and shares ISA to a cash ISA. But don’t close the ISA account you already have straight away.

Get in touch with us so we can arrange the transfer. That way you won’t lose out on any tax-free interest. It can take up to 15 days to transfer, but we aim to do it in just seven.

Number 1 clock icon
 

Step 1

Fill in our transfer form.

Transferring most ISAs only takes a few minutes.

Why not do it now?

Number 2 twin arrow icon
 

Step 2

We’ll talk to your provider.

We’ll get your provider to transfer your ISA over to us.

Just check to see if they have any charges or a notice period.

Number 3 calander icon
 

Step 3

Wait 15 days.

You can transfer cash ISAs in 15 days. Or less.

Stocks and shares ISAs might take a little longer. Up to 30 days.

Number 4 chart arrow icon
 

Step 4

Earn tax-free interest.

Get interest at the new rate from the day we get your completed transfer form. As long as your funds are free to move.

 

Is there anything else we can help with?

We’ve told you about all the ISAs out there – even the ones we don’t do so that you can choose the right one for you.

Find out more about our ISAs. Or speak to one of our Partners in branch. We’re always happy to help.

Visit

Visit

Find your nearest branch or cash machine using our Branch Locator tool.

Find branches