Our ISA range

ISAs explained

ISAs explained

We campaigned for a better tax-free deal for savers and the Government listened.

From 1 July, you’ll be able to save up to £15,000 tax-free, in any of our cash ISAs.

What is an ISA?

An Individual Savings Account (ISA) is a tax-efficient way to save or invest. UK residents aged 16 and over can choose to save in a cash ISA or if they are 18 or over, invest in a stocks and shares ISA or a combination of both. Parents or guardians can also open a junior ISA for children under 18.

The interest on a cash ISA isn't taxed so all the interest you earn you keep. With a stocks & shares ISA, all gains are free from capital gains tax, you don't even need to declare your ISA investments to the tax man.

The beauty of ISAs is that they don’t end when the tax year does. You take it with you into the new tax year meaning each year you get the tax benefits on the cumulative amount. You can keep adding to your ISA and the sooner you do this in the new tax year the more you can maximise the tax benefits ISAs give you.

You can only save with one cash ISA provider in each tax year. You can also have a stocks & shares ISA with the same, or a different provider.

Types of ISA available

There are 3 types of ISA available, cash ISAs, stocks & shares ISAs and junior ISAs. Find out more below.

Cash ISA

Cash ISA

Cash ISAs are savings accounts where interest is paid tax free, you can currently save up to £5,940 for the 2014/2015 tax year in a cash ISA.

  • Earn interest tax free
  • Option to split your allowance between Nationwide's full range of cash ISAs
  • Long term tax benefits - carry your previous tax years' savings over each year and keep adding to them
  • Choose from a range of fixed and variable rate accounts with various access options
  • Available to UK residents aged 16 or over
  • We've made seven promises to our savers designed to help them make the most of their savings, read our Savings Promises

Junior ISA

Junior ISA

Junior ISAs were introduced by the Government in November 2011. A junior ISA is a tax efficient way to save for your child’s future and is designed for children under the age of 18 who do not hold a Child Trust Fund voucher. The junior ISA encourages both parents and children to save, with the aim of ensuring that children have some money behind them on their 18th birthday (when they can access the funds in the account) to help them make the transition into adult life. Nationwide currently offers a junior cash ISA for children.

Find out more about our Smart Junior ISA

Stocks & shares ISA

Why a stocks & shares ISA?

In today's low interest rate environment, you may be wondering how to try and make your money work harder.

Here are just a few good reasons to consider a stocks & shares ISA:

  • If you are prepared to invest you could get protection against the possible effects of inflation on your money
  • Any growth made on a stocks & shares ISA is protected from capital gains tax
  • You could save time on your tax return as you don’t have to declare any investments held in a stocks & shares ISA 

Investing in a stocks & shares ISA through Nationwide

Providing you're comfortable with both aiming to invest for a minimum of 6 years or more and the increased risk associated with investments, they can offer greater potential returns than traditional savings. Nationwide has a carefully selected range of investment funds provided through Legal & General, all of which can be invested tax efficiently as a stocks & shares ISA.

The value of your investment can go down as well as up, so you could get back less than you invested.

Find out more about a stocks & shares ISA
Need advice? Come and talk to us

What is the ISA allowance?

Each tax year you have an ISA allowance, for the tax year 2014/2015 (6 April 2014 until 5 April 2015) your allowance is £11,880. You can save up to £5,940 in a cash ISA with the remainder in a stocks & shares ISA, or, you can invest your full allowance in a stocks & shares ISA.

The Government has proposed changes meaning that from 1 July 2014 the 2014 / 2015 ISA allowance will be increased from £11,880 to £15,000. Under the new rules, you'll also be able to split your £15,000 ISA allowance as you wish between a cash ISA and stocks & shares ISA.

Find out more about what's changing from 1 July

Ways you could use your ISA allowance

Take a look at the table below to see some examples of how you could split your full ISA 2014/2015 allowance between a cash ISA and a stocks & shares ISA.

 
Total 2014/2015 ISA allowance
Cash ISA allowance used
Stocks & shares ISA allowance remaining
Example 1 £11,880 £2,500 £9,380
Example 2 £11,880
£4,000 £7,880
Example 3 £11,880
£5,940 £5,940
Example 4 £11,880
£0 £11,880

ISAs don't end when the tax year does

You take your ISA with you into the new tax year meaning each year you get the tax benefits on the cumulative amount. You can keep adding to your ISA and the sooner you do this in the new tax year the more you maximise the tax benefits ISAs give you.

What's changing about ISAs?

Nationwide has been campaigning on your behalf for many years to increase the amount you can save tax-free in a cash ISA. It’s one of the little things we do for our savers that make a big difference.

Now the Government has listened, and introduced some major changes to how ISAs work, and how much you can save without paying tax. Here’s a quick summary of the changes:

  • From 1 July 2014, the annual allowance - the amount you can save or invest in an ISA - increases to £15,000
  • You’ll then be able to choose how you use your ISA allowance. So you can split the amount you pay into an ISA between a cash ISA and a stocks and shares ISA exactly as you choose

What does this mean to you?

  • For the first time, you’ll be able to save up to your ISA allowance limit in a cash ISA. So from 1 July 2014 the amount you can save tax-free in a cash ISA increases from £5,940 to a maximum of £15,000
  • Your £15,000 allowance is for the whole tax year – that’s 6 April 2014 until 5 April 2015. So if you choose to save or invest in an ISA between 6 April – 30 June 2014, that will count towards your £15,000 allowance
  • £15,000 is your total new ISA allowance. It’s up to you how you split your allowance between a cash ISA and a stocks & shares ISA, but you cannot save or invest more than £15,000 in the 2014/2015 tax year

Saving in an ISA before 1 July

With the ISA allowance increasing on 1 July 2014, what does that mean for the beginning of the tax year?

Traditionally, the beginning of the tax year is a time when many people save into a cash ISA or invest in a stocks and shares ISA. You may be wondering what will happen if you save or invest in an ISA before 1 July, and whether you should wait.

Here’s some information to help you make your decision. The examples below show you how much you can still save into a cash ISA or stocks & shares ISA if you open an ISA between 6 April – 30 June 2014.

  Saved / invested from 6 April 2014 How much can you save / invest in an ISA from 1 July 2014 - 5 April 2015?
  Cash ISA Stocks & shares ISA  
Example 1 £5,940 - £9,060
Example 2 £5,940 £5,940 £3,120
Example 3 - £5,940 £9,060
Example 4 - £11,880 £3,120

Don’t forget, £15,000 is the new ISA allowance from 1 July for the 2014/2015 tax year. It’s up to you how you split your allowance between a cash ISA and a stocks & shares ISA, but you cannot save or invest more than £15,000 in the 2014/2015 tax year.

Can I add money to an existing Nationwide ISA after 1 July 2014?

A cash ISA taken out from 6 April - 30 June

Adding to a cash ISA you've taken out from 6 April - 30 June

Nationwide are committed to doing everything we can to help our savers. So if you take out any Nationwide Cash ISA between 6 April and 30 June 2014, you’ll be able to add to it up to the maximum £15,000 allowance from 1 July 2014.

Nationwide Cash ISA taken between 6 April - 30 June 2014 Can I add to my cash ISA from 1 July 2014?

An instant access ISA

Yes, up to the new £15,000 allowance
Regular Saver ISA

Yes.

The new Regular Saver ISA is designed to let you to save up to the new £15,000 allowance over 12 months. You can save up to £1,250 per month from April 2014 – March 2015.

The maximum monthly deposit limit will be removed from 1 March 2015 so you can add any amount up to your remaining ISA allowance.

Fixed Rate ISA

Yes.

We know Fixed Rate ISAs are popular with our members, and we want to give anyone taking out a Fixed Rate ISA from 6 April 2014 – 30 June 2014 the opportunity to top up their ISA during July 2014.

With this commitment to you, you can make the most of your initial ISA allowances now, knowing you’ll be able to top up when the new ISA allowance comes in on 1 July 2014. It’s another little thing we’re doing to help our savers.

A cash ISA taken out before 6 April 2014

Adding to a cash ISA you've taken before 6 April 2014

You may already have a Nationwide cash ISA which you took out before 6 April 2014. With many cash ISAs, you can add to your savings in your ISA up to the limit of your new cash ISA allowance each tax year. Some people prefer to do this, rather than taking out a new cash ISA every year.

Which cash ISA did you take out before 6 April 2014? How much can I add to my existing cash ISA between 6 April - 30 June 2014? How much can I add to my existing cash ISA between 1 July 2014 - 5 April 2015
An instant access ISA Up to £5,940 You can top up your ISA up to your total £15,000 new ISA allowance for the year.
A Fixed Rate ISA Sorry, you can't add to a previous year's Fixed Rate ISA. But you can take out a new Nationwide Cash ISA.

Please note you can only save with one cash ISA provider in each tax year. So if you have a Nationwide cash ISA which you took out before 6 April 2014, you'll only be able to add to it if you wish to use your 2014/2015 ISA allowance in a cash ISA with Nationwide.

A stocks & shares ISA

Adding to an existing stocks & shares ISA after 1 July 2014

If you have an existing Nationwide stocks & shares ISA that you wish to use for the 2014/2015 ISA allowance, you'll be able to add to it at any time from 1 July 2014, up to your total £15,000 new ISA allowance.

It’s up to you how you split your allowance between a cash ISA and a stocks & shares ISA, but you cannot save or invest more than £15,000 in the 2014/2015 tax year.

For advice about stocks & shares ISAs, please talk to a Nationwide Financial Planning Manager. They’ll be happy to advise you of your options.

We will advise and make a recommendation for you after we have assessed your needs, but we only offer restricted advice on limited types of products from a limited number of companies. You may ask for the list of companies and products we offer advice on.

Jargon explained

Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
The tax information provided is based on our current understanding of current law and HM Revenue & Customs practice which can change.

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