What is an ISA?
The Individual Savings Account, or ISA for short, is a tax efficient savings account.
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There are 2 types of ISA:
■ Cash ISA
■ Stocks and Shares ISA
Cash ISA - The Loughborough currently offers 2 Cash ISAs
Stocks & Shares ISA - The Loughborough does not offer a Stocks & Shares ISA
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Subscription Limits
Investors can subscribe up to £7,200 in each tax year.
Subject to this overall limit, the amounts that an investor can put into each type of ISA in a tax year are as follows:
■ Cash ISA - up to £3,600
■ Stocks and Shares ISA - up to £7,200 (less any amount invested in a Cash ISA)
So, for example, an investor could subscribe
■ £3,600 to a cash ISA and £3,600 to a stocks and shares ISA
■ £2,000 to a cash ISA and £5,200 to a stocks and shares ISA
■ Nothing to a cash ISA and £7,200 to a stocks and shares ISA
Subscription limits apply only to the amount subscribed, and the amount subscribed is not reduced if an investor makes a subsequent withdrawal. An investor who has not subscribed up to the limit in any year cannot carry forward the difference and add it to the subscription limit for the next year.
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Who can open a Cash ISA?
An investor can open a Cash ISA in the tax year in which they become 16 but only on or after their 16th birthday. They must also be resident and ordinarily resident in the U.K. for tax purposes or, if not resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas) are treated as being performed in the U.K. or they must be married to, or in a civil partnership with, a person who performs such duties. Only individuals who have not opened a Cash ISA with another
organisation in the current tax year can open a Cash ISA with the Loughborough. By opening a Cash ISA, you will be limiting the amount of investment that you can make in a Stocks & Shares ISA.
ISAs cannot be held in joint names.
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How do I open an account?
For further information on how to open an ISA please visit the How to apply
page.
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Can I transfer my Cash ISA?
The simple answer is “yes”. The
Loughborough accepts the transfer
of an existing Cash ISA from another
provider. We can give you a transfer
form to complete to hand to your
current provider.
An investor will be allowed to
request the transfer of funds in a
Loughborough Cash ISA to another
ISA manager at any time and can
state the time period within which
this transfer should take place. The
Society will normally only require
two working days notice to effect
transfers for an instant access Cash
ISA and the notice period or penalty
will apply to the 30 Day Cash ISA Account and the closed issue 90 Day Cash ISA.
If the transfer relates to the current
year subscriptions then the whole of
those subscriptions must be
transferred. Funds in an ISA from
previous years investments may be
transferred from one manager to
another in whole or
in part.
The Loughborough DOES NOT
charge for making a transfer, and will
accept transfers from other
ISA managers.
For more details, and to request a Transfer Application Form, please call our Investments Team on 01509 631960.
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What about my TESSA Only ISA (TOISA)?
From 6 April 2008, TOISAs will no longer exist and these accounts will automatically be re-classified as a Cash ISA. If you held a TOISA with The Loughborough and would like to transfer your account to one of our Cash ISAs, or if you held a TOISA elsewhere and would like to transfer it to The Loughborough, please call our Investments Team on 01509 631960.
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Terms and Conditions
The Loughborough Cash ISA.
■ Minimum opening amount of £1.
■ Minimum subscription of £1.
■ Interest is variable, calculated daily and
is added to the account on 5 April.
■ A range of accounts from Instant Access to 30 days notice (subject to the Society's normal withdrawal limits).
■ Investors will normally only be allowed to hold
one Cash ISA account with the
Society, irrespective of which tax year
the initial subscription was made.
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Interest
The favourable tax treatment of the interest earned on a Cash ISA is the responsibility of the government and may not be maintained in the future.
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