The inherited ISA allowance

Using the inherited ISA allowance with Nationwide

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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 new rules.

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 if they held an ISA with another provider, you will 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.

Inheritance ISA - interest rates

Inheritance ISA - interest rates
Savings account balance AER % AER % (includes bonus) Gross % (per annum) Net % (per annum)
£1+ 0.75% n/a 0.75% n/a

Effective from 12 August 2016

This is a cash ISA designed to accept inherited ISA allowance subscriptions only. Transfer of existing ISA funds is not permitted. Rates are variable.

Inheritance ISA - summary box

Inheritance ISA - summary box
Key product information for our Inheritance ISA - Issue 5
Account Name Inheritance ISA - Issue 5
Interest Rates (AERs) See the 'Interest rates' table above
Tax Status


Conditions for bonus payment


Withdrawal arrangements

Instant access.


Branch, Internet Banking and Banking App

Further information

Further information
Opening the account
  • Open your account by handing your completed form in at any branch or by post
  • The minimum initial deposit to open your account is £1
Paying money in

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.

Taking money out
  • You can withdraw up to £500 a day in cash (or larger amounts in the form of a cheque) at any of our branches.
  • You can transfer money to another Nationwide account, using Internet Banking, the Banking App or in Branch.
ISA flexibility

Withdrawn money can be replaced in an alternative Nationwide ISA product (subject to each product’s specific terms and conditions) in the same tax year, without impacting your annual ISA allowance.

Interest Interest is added to your Inheritance ISA account annually on 30 September.
You can choose to add interest to your Inheritance ISA account, another Nationwide current or savings account (subject to the terms and conditions of the receiving account) or a current account with another bank or building society.
Interest earned on a cash ISA does not count towards your annual ISA allowance.

Important information about using an Inheritance ISA

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 seen as existing ISA subscriptions. You are then free to transfer your funds to another Nationwide cash ISA or an ISA with another provider, providing it accepts existing ISA subscriptions.

If you’d rather use your Inherited ISA allowance in a Stocks & Shares ISA

You can also use your inherited ISA allowance in a Stocks and Shares ISA. If you wish to consider this option through Nationwide please ask in branch for further information.

Ready to apply?

You can apply for an Inheritance ISA in branch or by posting us a completed application form. Please read the inherited ISA allowance guide included within the pack beforehand as it provides instructions on how to apply.

Existing Inheritance ISA customer?

You can get more paying-in slips by filling out our online request form.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Gross p.a. is the interest rate without tax deducted.
Net p.a. is the interest rate after the deduction of tax.
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, both of which may change.

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