Your simple
ISA guide
How to make the most of
your tax efficient savings
and investments
New ISA
allowance
Contents
An introduction to cash ISAs
4
Cash ISA
6
Fixed Rate ISA
7
Stocks & Shares ISA
8
Junior Stocks & Shares ISA
10
Savings Promises
12
…and more flexibility
You can now move your money from a stocks and
shares ISA to a cash ISA and access it more easily.
A simple way to save with
an ISA
Whether you’re saving for a holiday, a deposit for your
dream home or a comfortable retirement, an Individual
Savings Account (ISA) could be the perfect place to start.
This guide is here to help you find the right ISA for you.
New increased allowances for
your ISA in 2014…
What’s a cash ISA?
It’s a savings account that gives you tax-free interest on your savings. Anyone who is aged 16 or over and resident in the UK can have one.
Why should I have one?
It’s the only way to take full advantage of your yearly tax-free savings allowance. Any interest your money earns is all yours, so it can help you reach your savings goals quicker.
Did you know 20p out of every £1 of interest earned is paid as tax for a basic rate taxpayer? With a cash ISA you get to keep the full £1 instead of just 80p.
How much can I save tax free?
From 1 July the 2014/2015 cash ISA allowance increases from £5,940 to £15,000. So you can now top up your cash ISA to a maximum of £15,000 (less any money you have put into a stocks & shares ISA during the current tax year) before 5 April 2015.
Can I pay into more than one cash ISA each year?
No. You can only pay into one cash ISA in each tax year.
Can I open a cash ISA in joint names?
No. Each individual has a tax-free savings allowance that can’t be combined into a joint account. But, if you’re both 16 or over you can open one each.
Can I transfer money between ISAs?
Yes. As well as already being able to transfer cash ISAs to stocks and shares ISAs, from 1 July ISAs are more flexible than ever as you’ll be able to transfer existing stocks and shares ISA balances into a cash ISA. Just fill in an ISA transfer form.
How do I transfer my existing cash ISAs to NatWest?
Just fill in an ISA transfer form and we’ll do the rest. Don’t try to transfer the funds yourself, because then the interest you earn will lose its tax-free status. We’ll text or write to you when the money goes in.
Please note: The interest payable or tax treatment may be subject to
change in the future and depends upon your individual circumstances.
Gives you the flexibility to put in or take
out your money whenever you need to
•
A cash ISA with a variable interest rate.•
Save from a minimum of £1 up to a maximum of £15,000 (less any money you have put into a stocks & shares ISA during the current tax year) before 5 April 2015.•
You can save a lump sum, set up a standing order or pay in when it suits you.•
You can download our Mobile Banking App to transfer money easily.•
Transfer existing ISA balances from other providers easily.•
Interest paid monthly so you can watch your savings grow.The NatWest Mobile Banking App is available to NatWest personal current account customers with a debit card, Online Banking and a UK mobile number starting with 07, on any of the following devices: iPhone, iPad, Android,
BlackBerry and Windows smartphones.
Please note:
If you withdraw money from your cash ISA, you can’t reinvest it in the same tax year if your total deposits will exceed your yearly allowance.
Cash ISA
Great for you if…
Offers a fixed rate of interest for your chosen term
•
Offers a fixed rate of interest with a choice of 1 or 2 year term.•
You can save from a minimum of £1,000 up to a maximum of £15,000 (less any money you have put into a stocks & shares ISA during the current tax year) before 5 April 2015.•
You can also transfer in existing ISA balances from other providers easily.•
You have to make a payment into your Fixed Rate ISA before the term starts. You can’t add in any more money after the start date.Please note:
If you need to close your NatWest Fixed Rate ISA before the term ends there will be an early closure charge. Partial withdrawals are not allowed.
Fixed Rate ISA
Great for you if…
…you want the certainty of knowing how much
interest you’ll get.
For more information on our cash ISAs Call us on 0800 854 581
Stocks & Shares ISA
Great for you if…
…you don’t mind taking a risk for potentially
higher returns
A tax efficient way for those with an appetite for
investments and a greater level of risk
•
How you invest your money depends on a variety of different aspects including your attitude to risk, how long you want to invest your money for and how much access you need to your money.•
If you’re looking for an investment with the potential for your money to grow or generate an income, you can take control with your ISA.•
The most you can put into a stocks & shares ISA for the 2014/2015 tax year is £15,000, less any money you have put into a cash ISA during the current tax year.•
To open one, you must be resident in the UK and 18 or over.Please note:
A tax efficient way to save for your
child’s future if you’re happy to take
on an element of risk
•
Stocks & shares and cash are the two types of Junior ISA. We offer a Stocks & Shares Junior ISA as a tax efficient way of saving up to £4,000 for your children in the 2014/2015 tax year.•
It’s available for children under the age of 16 who don’t already have a Child Trust Fund.•
When your child reaches the age of 18, the Junior ISA will convert into an adult ISA in the child’s name and they can start to take out money if they’d like.There are two ways to start investing
in our Junior ISA
•
Set up with a Direct Debit from £20 a month.•
Or invest an initial lump sum of £250.Junior Stocks & Shares ISA
Please note:
This Junior ISA investment is linked to shares so the value of the account could fall as well as rise, and your child may get back less than has been invested. If you’re applying for a child who is over the age of 13, please be aware that the NatWest Junior ISA is an investment product, which typically should run for a minimum of 5 years.
For our Junior ISA
Hi, I’m Pigby
We’re making 4 promises
to our cash ISA customers
for 2014.
We’ve listened and we know how
important savings are to you and your
family. They help pay for holidays,
retirement and education, as well as life’s
unexpected moments. That’s why we’ll
be doing everything we can to make
saving with us simpler. We promise.
Promise 1
We’ll give our existing savers our best instant access cash ISA rates
Your loyalty is important to us and to prove it new instant access cash ISA customers won’t be offered better rates than existing savers.
Promise 2
We won’t use an introductory ‘teaser rate’ to get you to start saving with us
We’ve listened to our customers and we know many of you don’t like ‘teaser rates’. We want you to be happy saving with us and so we promise not to do this.
Promise 3
To keep things simple we only have two cash ISAs
We believe that less is more when it comes to making savings choices. To keep things simple we currently have just two types of cash ISAs for you to choose from – a fixed rate ISA and an instant access variable rate ISA.
Promise 4
We’ll help create a new generation of savers
Tax-free interest Tax-free interest means that interest payable is exempt
from UK income tax. This applies to a cash ISA
Tax-free savings Tax-free savings means that interest payable is exempt
from UK income tax. This applies to a cash ISA
Tax Year Runs from 6 April one year to 5 April the following year
Tax-free savings The amount of money you can save or invest in each tax
allowance year with a cash ISA
ISA Individual Savings Account
Fixed Rate A set rate of interest for a set period of time
Cash ISA A savings account that earns tax-free interest
Stocks & Shares ISA An ISA that allows you to make tax efficient savings.
This means that whilst tax may be payable on dividends within the investment, any returns earned are free from tax
Junior ISA An ISA account for children under the age of 18
ISA transfer Moving existing and/or previous ISA(s) to a new
ISA account
Variable Rate The interest rate can go up or down in the future
Instant access You can withdraw your money instantly without any
notice or penalty
Child Trust Funds A long term savings account available to children born
Call us on 0800 854 581
Customers with hearing or speech impairments can contact
us on Minicom number 0800 404 6161
For all telephone numbers featured in this guide, lines are open: Monday to Friday 8am to 8pm, Saturdays 9am to 6pm, Bank holidays 9am to 6pm. Calls may be recorded.
www.natwest.com/isa
or visit us in branch to find out more
Your eligible deposits with National Westminster Bank Plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit protection scheme. Any deposits you hold above the £85,000 limit are not covered.
