Guide to ISAs: allowances and rules explained
What is an ISA?
A cash ISA is a savings account that allows you to save your money with interest free of UK income tax.
You must be resident and ordinarily resident in the UK and aged 16 or over to hold a cash ISA.
Your quick guide to opening an ISA
You can open a cash ISA if:
- You must be resident and ordinarily resident in the UK
- You're aged 16 or over
- You haven't already opened a cash ISA in the present tax year (the 2012/13 tax year runs from 6 April 2012 until 5 April 2013)
ISA FAQs
Can I open a cash ISA online?
If you are a Barclays Online customer you can open a Loyalty Reward ISA online.
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How many cash ISAs can I have?
You can only open one cash ISA in every tax year but there are no limits on the number of cash ISAs you can hold over time.
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How much can I save in a cash ISA
You can save up to £5,640 in a
cash ISA
in the 2012/13 tax year, which ends on 5 April 2013 3.
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What are the tax benefits of a cash ISA?
You pay no tax on any of the interest that you earn from the savings in your cash ISA. You can take your money out at any time without losing tax relief.
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What cash ISAs do Barclays offer?
Our
Loyalty Reward ISA
is available to all customers who have a Barclays current account or £500+ saved with Barclays. Our
ISA Saver – Issue 2
is available to all customers.
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I have used my annual cash ISA allowance for this year
Your total ISA allowance is £11,280 so you can invest a further £5,640 in an investment ISA (also known as a
stocks and shares ISA
).
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Important information
1. AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and compounded once each year.
2. Tax-free: Indicates that interest is exempt from UK income tax provided all ISA conditions are met. The level and basis of tax can change and the value of tax relief depends on the individual taxpayer.
3. Loyalty Reward ISA is a cash ISA. Applicants must be 16 years old and over and resident and ordinarily resident in the UK for tax purposes. You must not have subscribed to another cash ISA or used your total annual ISA allowance in a stocks and shares ISA during the same tax year. Rates are variable. Interest is paid monthly on the first working day of the month. The rate quoted above includes an introductory bonus of 1.00% tax-free pa. The bonus is payable for 12 months from the date the account was opened, after which point the rate will reduce accordingly. We may withdraw the availability of Loyalty Reward ISA, or withdraw or change the bonus offer, at any time without notice. This would only apply to new accounts opened from that time.
