Guide to ISAs: allowances and rules explained

You can only subscribe to 1 cash ISA with 1 provider each tax year but you can still hold savings in multiple Cash ISAs from previous tax years. You need to be resident in the UK for tax purposes and aged 16 or over to hold an Instant Cash ISA, or 18 or over to hold a Flexible Cash ISA.

I’ve used my annual cash ISA allowance for this year
What are the tax benefits of a cash ISA?
How much can I save in a cash ISA
Can I withdraw cash from Instant Cash ISA – Issue 1?
Can I withdraw cash from Flexible Cash ISA – Issue 2?
Can I Transfer-In my cash ISA to Barclays?
What cash ISAs does Barclays offer?
Can I open a cash ISA online?
 

I’ve used my annual cash ISA allowance for this year

Your annual ISA allowance in the 2013/14 tax year is £11,520 so you can invest a further £5,760 in an investment ISA (also known as a stocks and shares ISA).

What are the tax benefits of a cash ISA?

You pay no income tax on any of the interest you earn from the savings in your cash ISA.

How much can I save in a cash ISA

You can save £5,760 in the 2013/14 tax year.

Can I withdraw cash from Instant Cash ISA – Issue 1?

Yes, but do remember that all funds paid in during the tax year cannot exceed your annual ISA allowance. Therefore, any funds withdrawn once this limit has been reached cannot be replaced in that tax year. For example, assume that you have an annual cash ISA limit of £5,760 for the 2013/14 tax year, and that you have deposited £4,760 into your cash ISA and then withdraw £2,000. Even though you’ve taken out this money, you will only be able to put in a further £1,000 in the same tax year.

Can I withdraw cash from Flexible Cash ISA – Issue 2?

Yes, you have the benefit of a fixed rate while still having access to some of your money if you need it. You can make up to 3 free withdrawals during the 3-year term, each of up to 10% of the current balance. However, partial Transfers-Out are not allowed. You can close the account or Transfer-Out the whole balance before the maturity date but you will be charged the equivalent of 270 days’ tax-free interest based on the current balance at the time. If there’s insufficient earned or accrued interest (or where you have chosen the monthly interest payment frequency option), the charge will be taken from the funds in the account and you may therefore get back less than you deposited. The charge does not apply if your account is closed during the cooling-off period or as a result of death or bankruptcy. If you want to transfer your 3 Year Flexible Cash ISA – Issue 2 to another Barclays account before the maturity date, please visit a branch or call us on 0800 494949 ².

Can I Transfer-In my cash ISA to Barclays?

Yes. Our Instant Cash ISA – Issue 1 accepts them at any time. The 3 Year Flexible Cash ISA – Issue 2 accepts them but your instructions must be with us within 30 days of opening the account. The tax rules around ISAs mean that you must transfer your money from one ISA account to another in the right way to keep your tax-free savings intact.

Never just withdraw your savings as cash and pay it into your new ISA, otherwise you’ll lose the associated tax benefits. If you do the transfer correctly, any balances from your previous tax year ISAs won’t count towards this year’s annual allowance.

See our transfer guide

What cash ISAs does Barclays offer?

Our  Instant Cash ISA – Issue 1 and 3 Year Flexible Cash ISA – Issue 2 are available to existing and non-Barclays customers. You’ll need to apply in branch if you’re new to Barclays.

Can I open a cash ISA online?

Yes, you can open a cash ISA in Barclays Online Banking if you’re registered.