All Savings Accounts
Skipton Cash ISA Plus
This account might be right for you if: You'd like easy flexible access to your money without affecting your ISA allowance. You'd like to receive a bonus on your savings for the first 12 months. You want to be able to transfer in ISA savings from previous tax years.
Aldermore 1 Year Fixed Rate Cash ISA
Interest is calculated daily, and paid monthly or at maturity for the 1 Year Fixed Rate Cash ISA and paid monthly or annually for the 2 and 3 Year Fixed Rate Cash ISAs. You can choose to have your interest paid to your Fixed Rate Cash ISA, another Aldermore Easy Access or Notice Account or your nominated UK bank or building society account.
AA ISA (Easy Access ISA Issue 12)
Rate includes a fixed bonus of 0.86% tax-free for 12 months from account opening. After 12 months the rate is 0.20% tax-free/AER variable. Interest calculated daily and paid to you in March. Open an account with a minimum deposit of £100. Transfer in ISAs held elsewhere – please check with your current provider if fees apply.
How does a cash ISA work?
A cash ISA is similar to an ordinary savings account. The main difference is that you don’t pay tax on the interest you earn. As a result, cash ISAs are an attractive option if you normally pay tax on your savings.
In the UK, individuals have an ISA allowance every tax year to encourage you to save or invest money without paying tax on the interest made. On the first day of the new tax year, you get a new ISA allowance which is the maximum amount you can put into a cash or investment ISA.
The tax benefits offered by ISAs make them the best way for most people to save, and this is why ISAs make a great alternative to normal savings accounts or bonds.
There are different kinds of cash ISAs with the most simple option being an easy access account that pays variable rates of interest. You can also choose a fixed-rate ISA which is similar to a savings bond. They often pay higher rates of interest but you are only able to make limited withdrawals.
As with standard savings accounts, cash ISAs come in a variety of shapes and sizes, and finding the best one for you depends on your individual circumstances. You should consider whether you are comfortable tying up your money for a fixed period of time to gain a better interest rate, or whether you want instant access to your savings.
FAQs about cash ISAs
What is an ISA?
An Individual Savings Account (ISA) is a type of savings account where you don’t have to pay tax on the interest earned. In terms of features, there isn't much difference between cash ISAs and a normal savings account.
What’s the difference between a cash ISA and an investment ISA?
Investment ISAs have better growth potential than cash ISAs. However, they are more risky than cash ISA’s because they can fall in value. The one to choose depends on the length of time you’ll be saving and your risk appetite.
Can I transfer my cash ISA into an investment ISA?
You can transfer your cash ISA into an investment ISA if the provider accepts ISA transfers. The provider may charge you for transferring into an investment ISA.
How many cash ISAs can I have?
You can only open one cash ISA each tax year. However, you can open a new ISA with a different provider each year.
How much can you invest in an ISA each year?
There are restrictions to the amount you can deposit into your cash ISA. This is known as your annual allowance and may change each year. The limit is £20,000 for the 2017/18 tax year.
Can you withdraw money from a cash ISA?
Yes, you can withdraw money from an easy access cash ISA at any time with no fees. However, fixed-term ISAs usually apply penalties if you want to withdraw your cash.
Are there tax advantages to opening a cash ISA?
Yes, there are several tax benefits to opening a cash ISA:1) You won’t need to pay tax on any profits made. 2) There’s no tax to pay on interest earned on bonds. 3) You won’t need to pay tax on dividend income.
How old do you have to be to open a cash ISA?
You must be over 16 and a UK resident to open a cash ISA. Though some providers offer Junior ISAs for younger children.