Cash ISA range

ISAs explained

What is an ISA?

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

On other savings accounts, you may have to pay income tax* on the interest you earn. The interest on a cash ISA is free from tax, 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.

*Many savers no longer pay tax on the interest they earn on non-ISA accounts. More about the Personal Savings Allowance.

What is the ISA allowance?

Each tax year, which starts on 6 April, you get a new ISA allowance. For the tax year 2016/17, the ISA allowance is £15,240 for cash, Stocks & Shares and Innovative Finance ISAs, and £4,080 for Junior ISAs.

Remember, to use the remainder of your tax-free annual ISA allowance for 2016/2017, or replace funds you have taken out during this tax year (subject to the terms and conditions of your account), the money needs to be put into your account before midnight on 5 April 2017.

What is ISA flexibility?

ISA flexibility means you can take money out of your cash ISA and replace it in the same tax year, without it counting towards your annual ISA allowance.

A couple of things to remember:

  • How much money you can pay in or take out depends on the terms and conditions of your account.
  • For Fixed Rate ISAs, if you want to take money out, you’ll need to close your account and pay an Early Access Charge. You could replace it into another Nationwide cash ISA, which may pay a different interest rate.

Types of ISA available through Nationwide

ISAs made simple

ISA flexibility

ISA flexibility

Stocks & Shares ISAs

More about ISA flexibility

Transfer your ISA

Stocks & Shares ISAs