What is an ISA?
An Individual Savings Account (ISA) is a Government savings scheme that allows you to save tax free. The Government set a limit of how much you can save in an ISA each tax year. The ISA allowance for the current tax year is £20,000.
Types of ISAs
There are several types of ISAs which are detailed below.
Cash ISA: An account that allows anyone aged 16 or over to save up to the annual adult ISA allowance without paying tax. You'll find that many organisations have varying withdrawal restrictions linked to their Cash ISAs. Here at the Tipton, our Branch ISA allows you to withdraw money whenever you need to.
Help to Buy: ISA: An ISA designed to help first time buyers save to move into their first home. When you close your account to buy your first home, the Government will give you a 25% boost on your savings. For more information on this scheme, visit the Government's website. This scheme was withdrawn on 30 November 2019.
Stocks and Shares ISA: These ISAs are designed for savers who are looking to invest over a longer period of time and prepared to accept the risks of investing in the stock market. Through our partnership with Wren Sterling, we can arrange for you to speak with a Wren Sterling Financial Adviser who can offer advice on investing in Stocks and Shares ISAs. To speak with an adviser simply complete our online contact form or call one of our branch offices to make an appointment.
In addition to these adult ISAs, children aged under 18 can open a Junior ISA. At the Tipton, we do not currently offer Junior ISAs. Please visit the Government's schemes page for more information on Junior ISAs.
Each tax year, the Government set a limit on the amount of money you can save in your ISA. If you do not reach this limit, the allowance will not rollover to the following tax year.
The ISA allowance for the current tax year is £20,000. You can only have one Cash ISA and one Stocks and Shares ISA in any tax year. Your annual allowance can be split however you choose between these ISAs as long as you do not exceed the limit.
On 6 April 2016 the Government introduced new flexible terms that allow you to pay back in to an ISA any money you may have withdrawn during the tax year without it counting towards your ISA allowance. These new flexible terms may not apply to any existing ISAs you hold with other providers. At the Tipton, flexible terms do not apply to our Cash ISAs. You should always check with your ISA provider whether flexible withdrawal terms apply before withdrawing any money.
Transferring your ISA
We don't currently accept transfers in from other ISA providers.
If you already have an ISA with us, you can transfer it out to another provider. If you let your new provider know, they'll manage this process with us.
Additional permitted subscriptions (APS) and continuing ISAs
Since 3 December 2014, where a person holding an ISA dies and they were married or in a civil partnership, the surviving spouse or civil partner is entitled to an extra ISA allowance known as the APS allowance.
On 6 April 2018, the APS allowance changed. The Building Societies Association have produced a leaflet that gives you more information about APS limits and continuing ISAs.