The inherited ISA allowance

Using the inherited ISA allowance with Nationwide

Print or email this page:

Using the inherited ISA allowance with Nationwide

Once the death has been registered and you have decided that you would like to use your inherited ISA allowance within a Nationwide cash ISA, you will need to open an Inheritance ISA. This is a cash ISA designed to meet the rules introduced on 6 April 2015.

Summary Box

Account name

Inheritance ISA Issue 5

What is the interest rate?

0.75% AER/tax-free (variable).

Interest is calculated daily and paid annually on 30 September and on closure.

Interest can be paid into the account, a Nationwide current or savings account (subject to the terms and conditions of that receiving account), or a current account with another building society or bank.

Can Nationwide change the interest rate?

Yes, the interest rate is variable. This means that we have the ability to change the interest rate. Please see the ‘Interest’ section in the Savings General terms and conditions which sets out when we can vary the interest rate and how we will notify you if this happens.

What would the estimated balance be after 12 months based on a £1,000 deposit?

The balance on an initial deposit of £1,000 with an interest rate of 0.75% AER/tax-free (variable) over 12 months would be £1,007.50.


This estimated balance is for illustration only and assumes that:

  • Interest is paid into the account
  • No further deposits or withdrawals are made
  • There is no change to the interest rate
  • Individual circumstances do not change.

How do I open and manage my account?

You can open an Inheritance ISA if your spouse or civil partner held a cash ISA with Nationwide or held an ISA with another provider. Please note that if they held an ISA with another provider, you’ll need to transfer this allowance to us providing you have not already started to use the inherited ISA allowance with another provider. Details on how to transfer an inherited ISA allowance to Nationwide are within the inherited ISA allowance guide.

  • You can open this account with a minimum of £1
  • All deposits will always count towards your inherited ISA allowance and must be paid in:
    • By cheque or transfer request from a Nationwide non-ISA account
    • Using a completed paying-in slip, either in branch or by post.

Please note: you cannot transfer money in from an existing ISA or deposit money via the Internet Bank or electronically from an external provider.

You can open this account:

Please read the inherited ISA allowance guide

You can manage your account:

  • Via the Internet Bank or Banking app (if you're registered for Internet banking)
  • In branch.

Please note: you will need a minimum of £1 in the account for it to operate.

It’s easy to move your savings between your existing Nationwide savings account or to open a new savings account with us. We can also close your existing savings account if you want us to. Just let us know when you open a new account on nationwide.co.uk, via our Internet Bank or Banking app (if you’re registered) or come and see us in branch.

Can I withdraw money?

Yes, this is an instant access savings account so you can get access to your money whenever you need it.

You can:

  • Withdraw up to £500 in cash a day or up to £500,000 by cheque at any of our branches
  • Transfer money to another Nationwide current account or instant access savings account held in your name, using our Internet Bank or Banking app (if you’re registered for Internet banking).

Withdrawn money can be replaced in an alternative Nationwide ISA product*, in the same tax year, without impacting on your annual ISA allowance.

*subject to each product’s specific terms and conditions.

Additional information

  • To ensure funds paid into an Inheritance ISA count towards your inherited ISA allowance and not your current tax year ISA allowance, this account operates differently to normal ISAs. It’s important you read the guide to understand how it works.
  • Please note, once the Inheritance ISA is opened and a deposit has been made against your inherited ISA allowance, funds are considered to be existing ISA subscriptions. You’re then free to transfer your funds to another Nationwide cash ISA or an ISA with another provider, providing it accepts existing ISA subscriptions.

Interest rate definitions explained:

  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year
  • Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

The tax information provided is based on our understanding of current law and HM Revenue & Customs practice, both of which may change.

The rates and information in this summary box are correct as of 23 November 2016.

    This Summary Box sets out the key features of the savings account. For full details, please read the account terms and conditions.

    Before you apply, please make sure you read the Summary Box and terms & conditions in full and print or save a copy of the PDFs below for future reference.