We updated our account conditions on 6 April 2016 to explain we now pay your interest gross.
On 6 April 2016 , the Government introduced a tax-free Personal Savings Allowance on the interest you earn on your savings and interest paying bank accounts. This means:
Please visit www.gov.uk/hmrc/savingsallowance for more information.
From 6 April 2016, some of our cash ISAs now benefit from a flexible feature.
The Government introduced a new ISA called innovative finance ISA on 6 April 2016.
Compare savings accounts to help you choose the best one to meet your needs.
No, we will pay gross interest on all of your savings and interest paying bank accounts. This means that no tax will be automatically deducted from interest on your behalf.
It depends on your personal circumstances. ISAs allow you to build up a pot of money over a number years, all of which will be tax free.
For example, if the amount of interest you earn on your savings accounts is above £1,000 (for a basic rate taxpayer) then you may be required to pay tax whereas any interest earned in an ISA is free from tax, regardless of the amount.
Instant ISA Saver, ISA Saver Variable, Variable ISA Saver and ISA Saver Online are fully flexible.
ISA Saver Fixed and Help to Buy: ISA do not have full flexibility as this is limited by product rules. See individual product conditions for full details from 6 April.
Flexibility does not apply to Junior Cash ISA.
Yes, as long as you replace it in the tax year that it was withdrawn. You can also deposit up to the annual ISA allowance (less any amount invested in a stocks and shares or innovative finance ISA).
Any previous years’ subscriptions that have been withdrawn must be replaced before you request an ISA transfer. Current year’s subscriptions can be replaced following the transfer as long as they are replaced in the same tax year that they were withdrawn. You can also deposit up to the annual ISA allowance (less any amount invested in a stocks and shares or innovative finance ISA).
No, any funds withdrawn must be replaced in the same tax year otherwise you will effectively lose the allowance and the replaced funds will count towards the following year’s tax allowance.