Cash ISA range

ISAs explained

What is an ISA?

An ISA (Individual Savings Account) is a tax-efficient way to save or invest. If you're starting to think about saving or investing, ISAs could be a good place to begin.

Usually, when you have a savings account, you pay income tax on whatever interest you earn. But the interest on a cash ISA isn't taxed, so all the interest you earn, you keep.

Stocks & Shares ISAs also have tax benefits which we've explained in more detail in the tab below.

What is the ISA allowance?

Each tax year, which starts on 6 April, you get a new ISA allowance. For the tax year 2015-16, the new ISA allowance is £15,240 for cash or Stocks & Shares ISAs and £4,080 for Junior ISAs.

Types of ISAs available

ISAs made simple

Cash ISAs

Stocks & Shares ISAs

Cash ISAs

Cash ISAs have similar features to savings accounts, but the interest you earn is tax-free. You're allowed to save up to your annual ISA allowance.

What's your allowance?

The allowance for the 2015/2016 tax year is £15,240.

What are the benefits of a cash ISA?

  • Choose from a range of ISA products designed to meet different needs:
    • Instant access - great if you need to be able to get to your money quickly
    • Regular saver - designed to help you save every month
    • Fixed rate - if you have a lump sum to save
  • Choose to have a branch based, or online based ISA
  • Not all ISAs end when the tax year does, so your money will continue earning you tax free interest as long as you've got the ISA.

What do I need to know?

  • You can open a cash ISA if you are aged 16 or over and you are resident in the UK
  • Each tax year, you can only choose one provider to have cash ISAs with
  • You can split your allowance between Nationwide's full range of cash ISA products
  • If you take money out of your ISA, you can only add more up to your unused ISA allowance
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Did you know...

From February to June 2014 customers have saved £870 million in Nationwide cash ISAs

Junior ISAs

Junior ISAs are tax efficient savings accounts designed to help you save or invest for your child's future. They encourage both parents and children to save, and the money is not available to the child until their 18th birthday.

Both junior cash ISAs and junior stocks and shares ISAs are available. Nationwide offers a cash ISA called the Smart Junior ISA.

What's the allowance?

This tax year 2015/2016, the allowance is £4,080.

What are the benefits of a junior ISA?

  • Allows parents to start a tax efficient account for their child as soon as they're born
  • The child can't access the money until they're 18, which means it's a great way to save for a house deposit or university fees

What do I need to know?

You can transfer a Child Trust fund or an existing Junior ISA into a new Junior ISA.

Children are eligible for a Junior ISA if:

  • They're under 18
  • They are resident in the UK
  • If the child is under 16, a parent or legal guardian can open the ISA for them
  • If a child is 16 or 17, they can open their own Junior ISA
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Did you know: It now costs around £8,770 a year for tuition fees at University.

Stocks & Shares ISAs

Stocks & Shares ISAs are a tax efficient way to invest

You can put your Stocks & Shares ISA allowance into a range of investments. Because they are held in the ISA, any gains you make are tax efficient. There's more on this in our guide to Stocks & Shares ISA.

What's the ISA allowance?

The ISA allowance for the 2015/2016 tax year is £15,240.

What are the benefits of a Stocks & Shares ISA?

  • The potential returns can be higher than cash equivalents with the current low interest rates*
  • Any gains you make are protected from capital gains tax, but there could be tax paid within the fund you have invested in
  • No need to declare any investments that you have in a stocks and shares ISA on a tax return
  • Investing should be be a long term savings plan and you should be comfortable with aiming to invest for a minimum of 6 years

the value of your investment can go down as well as up so you may get back less than you originally invested

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Transfer your ISA

Stocks & Shares ISAs

Why choose Nationwide