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 2017/18, the ISA allowance is £20,000. Nationwide offers cash, Stocks & Shares and Junior ISAs (where there is an annual allowance of £4,128). You can also save into an Innovative Finance ISA or Lifetime ISA (with an annual allowance of £4,000), although Nationwide doesn’t offer these products.

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

ISAs made simple

ISA flexibility

ISA flexibility

ISA flexibility

Stocks & Shares ISAs

Stocks and Shares ISAs

Stocks and Shares ISAs made simple banner

More about ISA flexibility

Transfer/manage a cash ISA

Stocks & Shares ISAs