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Banking & Saving ISA

Claim Your 08/09 Tax Free ISA Allowance Now

Good news!..from this 08/09 tax year the government has extended the limit to how much you can save an ISA from £7,000 to £7,200 per year.
The limit on the amount of cash you can deposit this year has also increased from £3,000 to £3,600.
The yearly allowance for investment into Stocks and Shares ISA has therefore fallen from £4,000 to £3,600.
Please remember, you can only open one ISA each financial year and you are only allowed to add funds to one ISA during each financial year.
Apply for an ISA now online. Simply click 'Apply' with any of the providers below:

Tax Free ISA

ProviderAccountAERNoticeDeposit Per YearApply
MinMax
ISA
5.50%
Instant
£1 £3,600
Apply >
[more info]
Index-Tracking ISAs
5%
5 years
£500 £3,600
Apply >
[more info]
Share Trading ISA
0%
Instant
£1 £3,600
Apply >
[more info]
Climate Change ISA
N/A
Instant
£100 £7,000
Apply >
[more info]
Alliance Leicester - ISA
  • Earn 6.00% gross p.a./AER, this rate includes a 1.00% bonus payable until 7 December 2009.
  • Save from £1 up to £3,600 in each tax year, plus any previous tax years’ ISA funds.
  • Funds cannot be transferred from another Alliance & Leicester ISA.
  • Save regular amounts each month, or put in one-off payments whenever you want, subject to ISA limits.
  • * Interest is paid annually
  • * Access your money within 24 hours when a transfer is made into your Alliance & Leicester current account: or up to 3 working days for transfers to a current account with another provider.
  • Online and telephone account.
  • No withdrawal charges.
  • Available to those aged 16 or over.
Legal & General - Index-Tracking ISAs
  • Index-tracking ISAs (sometimes called tracker ISAs) aim to produce a return in line with a market or sector, for example, Europe or technology.
  • You can Manage your investments online.
  • You can Choose from 9 index-tracking trusts to invest in.
  • Get unlimited returns from your investments - up £3600 per year Tax Free! After this point you will have to pay tax.
  • Warning: MARKETS CAN GO DOWN - INVESTMENTS CAN DECLINE IN VALUE
TD Waterhouse - Share Trading ISA
  • TD share dealing ISA puts you in control of your investments
  • You can choose from a wide range of investments including UK and international stocks and over 1,800 unit trusts from many of the best known fund providers.
  • No annual admin fee on an account if valuation of £3,600 or above.
  • You can benefit further as the Self Select ISA is a tax efficient Investment with any returns free from Capital Gains Tax.
Virgin - Climate Change ISA
  • ***To speak to Virgin ISA's please call 08456 10 10 39***
  • The Virgin Climate Change Fund is an environmental fund with a difference, investing in businesses Virgin believe have the potential for outstanding profit growth who are environmental leaders in their industry.
  • Invest up to £7,000 a year tax-efficiently through a Virgin ISA. You can invest more than this through a Virgin Unit Trust.
  • Pay in lump sums from £100 (your first lump sum must be at least £500). Or you can set up regular monthly savings, from £50 upwards.
  • You can stop, start or change your payments at any time without penalty.
  • 24 hour online service lets you keep track of your savings, make payments online, and change payments and other details.
  • No notice periods – you can get at your money whenever you want.

ISA Explained

  • What is an ISA?
ISA stands for Individual Savings Account. If you’re a tax payer at least 20% of interest you earn from savings accounts is taxed (40% if you earn more than £34,600). The only relief you get from this deduction is by opening an ISA that provides tax free interest, allowing you to add a maximum of £7,200 per tax year.
There are two types of ISAs: cash ISAs, and shares ISAs such as investments in stocks and shares or insurance. Savers are able to invest in two different ISAs in any one tax year: one cash ISA and one stocks and shares ISA.
You can invest up to £3,600 per tax year (6 April to 5 April the following year) in a cash ISA, and a further £3,600 in a stocks and shares ISA, paying no tax on the interest you earn, so it's a great way to make the most of your savings.

In the past many people found ISAs confusing as the regulations behind them were unclear. However, as of 6th April 2008 they have been simplified so now there is really no excuse not to take advantage of these great savings accounts.

  • ISA Managers
ISA managers (banks and building societies) must be authorised by the Financial Services Authority and approved by HM Revenue & Customs.

This means that you will have access to complaints procedures, the Financial Ombudsman Scheme and the Financial Services Compensation Scheme if you were to experience any problems.
To find out if an ISA manager is authorised by the FSA phone their Consumer Helpline on 0845 606 1234
  • How can I make the most of this fantastic scheme?
Each tax year everyone aged 16 or over is given a new ISA allowance. If you don't use it, you lose it. If you do invest in an ISA you can keep your money in there, tax-free for as long as you like.

The maximum amount you can invest in cash ISAs is £3,600 per year, regardless of whether you hold a stocks and shares ISA. However, you can use up your full £7,200 yearly allowance to invest in a stocks and shares ISA alone. As soon as the next tax year starts you have the opportunity to deposit another £7,200 into your ISAs.

For example, an individual saves £1,000 in a cash ISA at the start of the tax year. In the same tax year they could invest another £6,200 in ISAs. This could be made up of £2,600 in the same cash ISA and the remaining £3,600 in a stocks and shares ISA, or up to £6,200 in a stocks and shares ISA.

When opening cash or stocks and shares ISAs you are only eligible to make investments with a single provider (per account) in any one tax year. It is possible to hold both a cash and stocks and shares ISA with the same provider.

Most banks and building societies offer a wide variety of cash ISAs. These operate in a similar manner to taxable savings accounts offering fixed term and instant access accounts. Cash ISAs are most suited to savers looking for secure returns.

Stocks and shares ISAs are more suitable for people looking to invest over longer periods of time. Rather than earning money from accumulating tax free interest, stocks and shares ISAs involve an element of risk as returns depend on the performance of the stock you invest in. However, if you do some research you may find that your stocks and shares end up being more profitable than your cash ISA.
  • Tranferring your ISA
You can transfer cash and stocks and shares ISAs between providers, although you must remember to do this by requesting a transfer rather than by withdrawing the money.
Check the terms and conditions with your ISA manager to find out if you will be charged for transferring.
You are able to transfer some or all of the money saved in previous tax years without affecting your annual ISA investment allowance.
As of the 6th April 2008, you are able to transfer investments held as cash from previous years allowances as well as your current year’s cash allowance into stocks and shares with the tax-free benefits. However, you cannot transfer a stocks and shares ISA into a cash ISA.
  • What to remember
An important thing to understand is that you can only ever deposit up to £7,200 in cash & stocks and shares ISAs within one tax year, regardless of what you may have withdrawn throughout the year, so if possible try to avoid eating into your ISAs.

When transferring ISAs make sure you let the new provider arrange the transfer. You cannot simply close the first ISAand pay the money into another ISA.

Although you are restricted to £7,200 of investments per year, any savings from past years will still provide you with tax free interest.

For example, an individual has a total of £9,000 saved in cash ISAs from previous tax years. They plan to invest their full current years cash ISA allowance of £3,600 into the same account. They will then be earning tax free interest from the full £12,600. They can then continue to add to this account over coming years, or choose to transfer their existing savings over to a different provider.