ISAs explained

Interest you receive on cash ISAs is protected from UK tax. Additional Income or Capital Gains tax would not apply to on any potential money you earn from a stocks and shares ISA, innovative finance ISA or Lifetime ISA. 

To apply for a cash ISA you must be 16 or over, and to apply for a stocks and shares ISA, innovative finance ISA or Lifetime ISA you need to be at least 18. For tax purposes you must be a UK resident to apply for any ISA. Crown employees living abroad (such as diplomats and members of the armed forces) can also apply.

You can replace funds within an easy-access cash ISA, as long as you pay money back in to the ISA during the same tax year that it was withdrawn. You cannot do this with our stock and shares ISAs.

Cash ISAs help you save without paying any income tax on the interest you earn whilst offering the same security as any other savings account. Stocks and shares ISAs are a suitable alternative if you're looking to invest for between 5 to 10 years, or longer. They allow you to hold investments without paying Capital Gains Tax on any potential profits, any income you receive from your investments is also free from Income Tax. You must remember that with stock and shares ISAs, the value of your investment can go down as well as up and you may get back less than you originally invested.

Applications for a Help to Buy: ISA are no longer available. If you already have an existing Help to Buy: ISA you can continue to save up to £200 a month and claim the government bonus, subject to your eligibility. We are still accepting transfers of Help to Buy: ISAs from other providers. Find out more about transferring your Help to Buy: ISA.

We will be able to reset your Help to Buy: ISA with all the savings you had in at the time that the bonus was claimed. To start this process visit your local branch. The bonus you received will be returned to the scheme administrator, you will be able to claim this bonus again in future when you find another home.

If Covid-19 was the reason your house sale fell through (up to 30 June 2020) you have 15 months (rather than the normal 12) to restore your Help to Buy: ISA from the date you originally closed the account and your conveyancer should give you a Purchase Failure Notice stating 15 months.

At Halifax, we won’t charge you for transferring your cash ISA. We also don’t charge to transfer stock from your stocks and shares ISA to another provider, but admin charges will still apply. In addition if you are transferring to Halifax you need to be aware your current provider might charge you. Find our ISA Transfers page here.

Cash ISAs can be opened from as little as £1. A stocks and shares ISA may require a higher fee depending on which account you choose.

The tax year runs from April 6 in one year to April 5 in the following year.

A variable rate ISA offers you a rate of interest which can change over time. With a fixed rate ISA you know exactly what interest rate you will receive over the selected fixed time period.

It is your choice. Variable rate cash ISAs allow access to money in the account. Fixed rate ISAs may provide a higher rate of interest by locking your savings away for 2 years or more (withdrawal charges may apply). You have access to your money at any time with a stocks and shares ISA but this may be a more appropriate option for those seeking to invest for a period of 5 to 10 years.