23 June 2014
Nationwide is urging customers to make the most of higher annual ISA allowances after having successfully campaigned to raise and equalise the limits for cash and stocks & shares options.
The Society’s Chief Executive, Graham Beale, today called on ISA customers to capitalise on the rules, as from 1 July anyone with a cash ISA will be able to nearly treble their annual contributions from £5,940 to a new higher limit of £15,000. It will be the first time they will be able to match those investing in stocks & shares ISAs, which currently benefit from the full annual ISA allowance.
Nationwide Chief Executive, Graham Beale, said: “The ISA changes are a true victory for savers – for the first time cash and stocks & shares ISAs will be equal. We were naturally delighted that the Chancellor has brought in these positive changes and now it is a great opportunity for customers to make the most of the new higher limits and flexibility. It’s worth remembering that every pound invested into an ISA is a pound that is tax-efficient. It is a case of using the new allowance or missing out on the benefits it will bring.”
The changes, which see the total ISA limit raised from £11,880 to £15,000, will give savers greater choice and flexibility on how they choose to use their ISA, enabling them to either invest the full allowance in either cash or stocks & shares, or choose exactly how they want to split their investments between the two options.
Customers with money already invested in stocks & shares ISAs will for the first time be able to transfer all or part of their investment to a cash ISA as part of the shake-up. This will benefit those savers who want the security of a cash savings account but who would have previously been penalised by losing their tax-efficient shelter. Nationwide products that will accept transfers from either cash or stocks and shares ISAs include the market-leading Instant ISA saver - with an interest rate of 1.5% - and Fixed Rate ISAs of up to five years, offering interest rates ranging from 1.5% (1 year) to 2.5% (5 years).
In addition to the new changes, the 2014/2015 limit for savings in a child Junior ISA will also increase on 1 July – from £3,840 to £4,000.
Nationwide is the only main high street financial services provider that will allow customers to open multiple cash ISA products as part of their saver wrapper - meaning that its customers can take advantage of different interest rates and maturity periods.
Notes to Editors:
The new ISA rules will bring about a number of changes:
ISA rule changes:
- From 1 July 2014, the annual tax-free allowance for adults increases from £11,880 to a maximum of £15,000 and can be split between cash and Stocks & Shares ISAs in any way
- The amount able to be put into a cash ISA will for the first time match that of Stocks & Shares ISAs (rising from £5,490 to £15,000)
- The 2014/2015 limit for savings in a child Junior cash ISA is also increasing from £3,840 to £4,000 on 1 July
Nationwide Cash ISAs:
- All variable ISAs, and Fixed Rate ISAs opened post 1 July will accept new subscriptions (up to £15,000 a year) and transfers from Stocks & Shares ISAs (subject to terms and conditions)
- Savers who opened or reinvested and subscribed to a Fixed Rate ISA between 6 April and 30 June 2014 will be able to top-up their Fixed Rate ISA with new subscriptions in July 2014. Nationwide customers can utilise the rest of their allowance in a separate ISA product, as part of their ISA wrapper, at any time in the year
Nationwide ISA products include:
- Cash: Champion ISA, Fixed Rate ISAs of 1-5 years, the Flexclusive ISA (for eligible customers), Instant ISA Saver, Save to Buy ISA, Regular Saver ISA and for children under 18; the Smart Junior ISA. More information about our ISAs
- Stocks & Shares: Nationwide offers a variety of investment options and a carefully selected range of funds, which are provided through Legal & General. For advice about stocks & shares ISAs, please talk to a Nationwide Financial Planning Manager. Alternatively savers can invest in a Stocks & Shares ISA online - giving savers even more choice and flexibility on how they save
About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest
providers and a top-three provider of
mortgages in the UK. It is also a major provider of
Nationwide has around 15 million members.
Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 17,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.