When you’re putting money away for something, be it a fairytale wedding, a dream holiday or just a little safety net for the future, you want your hard-earned savings to really work for you. And if circumstances change it’s good to know that you can access your money quickly, whenever you need to.
Individual Savings Accounts (ISAs) are one of the most popular and tax efficient ways to save. A wide range of ISAs are available, which can be grouped into two main types: Cash ISAs and Stocks and Shares ISAs. Tax treatment depends on individual circumstances and may change.
Cash ISAs allow you to save for something special and receive interest with no tax taken off. They provide either a fixed or variable rate of interest on your savings. And some cash ISAs even allow you to withdraw your money quickly, in case of an emergency, rainy day or big purchase.
Stocks and Shares ISAs can be a tax efficient way to save, if you’re prepared to invest your money for at least five to ten years to help average out the highs and lows of the stock market. Their returns depend on the performance of the assets they invest in. With Stocks and Shares ISAs, their value can go down as well as up and you could get back less than you put in.
In the 2012/2013 tax year you can save up to £5,640 in a cash ISA. Alternatively you can invest the full £11,280 ISA allowance in to a Stocks and Shares ISA, less any amounts you plan to save in a Cash ISA in the same tax year.
Whatever you want to save for, Bank of Scotland offer a range of tax efficient ISAs to choose from. What’s more, their cash ISAs include accounts that give you quick and easy access to your money or allow you to save for a fixed interest rate.
Access Cash ISAWe all like to put something away for the future but when circumstances change you may want quick access to your savings. A Bank of Scotland Access Cash ISA offers a variable rate of interest and can be opened with as little as £1. Moreover an Access Cash ISA lets you withdraw money whenever you like. You just need to remember that once you’ve put in your full year’s cash ISA allowance, if you take any money out, you can’t add any more back in until the new tax year.
Fixed Rate Cash ISAIf you’d prefer to leave your money to grow for one year or longer, the Bank of Scotland Fixed Cash ISA gives you a fixed rate of interest. It’s simple to open and you can start saving from £500. With this ISA, you can’t withdraw or add any additional money during the term and if you decide to close it early, it would be subject to a loss of interest charge.
Stocks and Shares ISAA Stocks and Shares ISA from Bank of Scotland provided by Scottish Widows could be a tax efficient way to save if you’re happy to invest your money over the longer term (at least five to ten years). It gives you the option to invest a lump sum of at least £1,000 or set up a regular payment of at least £150 per month. As with any investment, the value of your investment could go down as well as up, and you could get back less than you put in.
Bank of Scotland Cash ISA PromiseIf you’d like to switch your cash ISA to Bank of Scotland, you will also receive their ISA Promise.
They’re making two commitments to help you make more of your savings:
1: When you switch your cash ISA to them, they’ll pay interest from day one of your application provided your funds are free to move. You don’t have to wait for your current provider to process the paperwork so you won’t lose one day of tax free interest. 2: They’ll keep you informed: while switching your cash ISA to them; when your reward or fixed rate cash ISA offer is coming to an end; of your cash ISAs interest rate.
Find out more about how Bank of Scotland ISAs can help you make the most of your ISA allowance and start your plans for tomorrow, today.
For an easy to read guide to all terms relating to Bank of Scotland cash ISAs, click here.
Important information
Cash ISAs are only available to individuals who are aged 16 and over and Stocks and Shares ISAs are only available to individuals aged 18 and over. In both cases, individuals must be resident and ordinarily resident in the UK for tax purposes. Tax free interest is the contractual rate of interest payable where interest is exempt from income tax.
Bank of Scotland investments are managed by Scottish Widows, part of Lloyds Banking Group. Scottish Widows Stocks and Shares ISAs invest via the Scottish Widows OEIC funds. Full terms and conditions and a copy of the most up-to-date Key Features are available on request or by visiting www.scottishwidows.co.uk/docs/SW58107.pdf
Please remember, you can only pay into one cash ISA and/or one Stocks and Shares ISA during the tax year; so, if you pay into a cash ISA with Bank of Scotland, you will not be able to pay into another cash ISA with them or any other provider in the same tax year. However, you can transfer cash ISA balances from other providers into your Bank of Scotland Cash ISA.
Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound, Edinburgh EH1 1YZ. Authorised and regulated by the Financial Services Authority. We are members of the Financial Services Compensation Scheme.
Information correct as at April 2012.