ISAs made easy
Your guide to simple, tax-efficient savings
Want to know how you can save tax-efficiently with an ISA? Confused by the options? Our guide explains the ISA basics.
Individual Savings Accounts (ISAs) work just like other savings or investments, except that you don’t pay tax on the interest or growth you earn. Whether you like saving in cash, stocks and shares, or a combination of both, there’s an ISA out there for you.
Cash ISAs
A cash ISA is a lot like a regular savings account – except you don’t pay any tax on your interest.
You can put a maximum of £3600 into a cash ISA every tax year
Stocks and shares ISAs
A stocks and shares ISA is designed to give you a return over years, not months. Like any investment, its value can rise or fall.
If you have a cash ISA, you can only put the difference between how much you have put into your cash ISA this tax year and £7,200 in a stocks and shares ISA.
But if you decide not to have a cash ISA, you can put a maximum of £7200 into a stocks and shares ISA every year.
Some ISA choices
You can earn attractive returns on our Cash ISAs and still get your hands on your money whenever you need to. Our stocks and shares ISAs give the potential for higher levels of growth.
Expert Managed Solutions, Investment Options ISA provides access to world-class fund managers and investment tools. You can access your money at any time but as your investment is in stocks and shares you should consider this a medium to longer term investment.
For our Capital Protected Investment ISA you should be prepared to leave the funds invested for the full term. Expert Managed Solutions, Investment Options ISAs and Capital Protected Investment ISAs are provided by RBS Collective Investment Funds Limited.
Use it or lose it
So to make the most of tax-efficient saving – start your NatWest ISA right now. After all, if you don’t use your ISA allowance in each tax year, you lose it.
Q. How much can I save in an ISA?
A. At the moment, everyone is entitled to save up to £7,200 a year in an ISA, subject to certain criteria.
You can use your tax-efficient saving allowance in two ways:
Either - Invest up to £3,600 in a Cash ISA
Plus the remainder into one of our Stocks and Shares ISAs (minimum investment may apply)
Or - Invest up to £7,200 in one of our Stocks and Shares ISAs (minimum investment may apply)
Q. Is my money safe in an ISA?
A. Yes – cash ISAs are similar to regular savings accounts, which means that the money you deposit is safe. What’s more, you won’t pay tax on your savings so they will grow faster.
And remember, our cash ISAs are fully covered by the Financial Services Compensation Scheme.
If you decide to invest in one of our Stocks and Shares ISAs you not only have a tax-efficient way to save but you also have the opportunity to benefit from the potential growth of the stockmarket. However, the value of equities can fall as well as rise and you may not get back the full amount of your original investment.
For the Capital Protected Investment ISA your capital is protected at the end of the fixed period, if you withdraw funds before the end of the fixed period you may not get back the full amount of your original investment.
Q. Can I get access to my money?
A. Yes, you have instant access to your money at any time, whichever ISA you choose.
However, with an Expert Managed Solutions Investment Options ISA you should be prepared to invest for five years or more and you must withdraw amounts of at least £500. For the Capital Protected Investment ISA you can withdraw amounts of at least £500 but you should be prepared to leave the investment for the full term for capital protection to apply.