Cash ISA - Questions & Answers

How did the ISA rules change in April 2008?

From that date:

• The annual ISA investment allowance was raised to £7,200. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or a different provider.
• ISA savers can now invest in two separate ISAs each tax year; a Cash ISA and a Stocks and Shares ISA. Mini and Maxi ISAs no longer exist.
• Mini Cash ISAs, TESSA-only ISAs (TOISAs) and the Cash component of a Maxi ISA all became Cash ISAs.
• Mini Stocks and Shares ISAs and the Stocks and Shares component of a Maxi ISA all became Stocks and Shares ISAs.
• All Personal Equity Plans (PEPs) became Stocks and Shares ISAs.
• ISA savers can now transfer money saved in their Cash ISA to their Stocks and Shares ISA.

How do ISAs work?

ISA savers can invest in two separate ISAs each tax year, these are:

• Cash ISAs
  This may be suitable for short-term savings, so that you can get at your money easily.
  Read more about Cash ISAs
  
  
• Stocks and Shares ISA
  This may be appropriate if you can afford to leave your money untouched for longer than, say, five years. However, your investment may go down in value as well as up and there are no guarantees that you will make a profit.
  Read more about Stocks and Shares ISAs.

How many ISAs can I have in each tax year?

From 6th April 2008 you will be able to invest in one Cash and one Stocks and Shares ISA each tax year.

How much can I invest?

Until the end of this current tax-year on 5 April 2009, you can invest an annual ISA investment allowance of £7,200. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or another provider.

You can open a Standard Life Bank Cash ISA with as little as £1.

What rate of interest will I earn on my Cash ISA?

Your Cash ISA interest will be paid tax free. Take a look at our current savings rates.

Your Direct Access Cash ISA can also be pooled with other Direct Access Savings Accounts (DASAs) in your plan (whether these are your own accounts or ones you are pooling together with friends and family). This means you would receive interest on the combined balance of your pooled DASA and Cash ISA accounts - potentially earning a higher rate of interest. Click here to find out more about our pooling facility.

How do I open an account?

Telephone
Opening an account is remarkably quick and simple. Just ring us on 08457 55 56 57 Mon-Fri: 8am-6pm.

Please have the following details to hand:

• The account number and sort code of your UK current bank account or building society account. This will be your designated external account.
• Name, address, date of birth and your National Insurance Number.
• Details of how much you want to deposit with Standard Life Bank - you can open the account with only £1.
• Where and how often interest should be paid .
• Frequency of statements required - monthly, half-yearly or yearly.

Once we have taken your details we will send you out a Welcome Pack which contains Savings Terms & Conditions and a Direct Debit Mandate.

We will ask to see two forms of identification. For security reasons we ask you to choose a PIN number and a password. Any time you want to make a transaction, we'll ask you to tell us a random number from your PIN and a character from your password. That's as complicated as it gets.

Please note you cannot open a Cash ISA account online and cannot make online transactions on your Cash ISA.

Can I transfer my existing Cash ISA to Standard Life Bank?

Yes, all you need to do is contact us to open the Cash ISA and then inform your current ISA Manager you wish to transfer to us. To be compliant with HM Revenue & Customs, ISA transfers will always happen within 30 days. You should be aware that your existing ISA manager may charge you an exit fee.

If you are opening a Direct Access Cash ISA, you can transfer all your previous years' subscriptions along with the current one.

If you are opening a Fixed Rate Cash ISA, you can only transfer your 2007/08 and 2008/09 subscriptions.

When will I receive statements?

We will send you statements on a half yearly basis, however you can request an interim statement at any time. Call our Savings department on 08457 555 657 to arrange.

How long do I have to keep my money in a Cash ISA?

You can withdraw funds from a Cash ISA at any time - just give us a call. But please note if you do remove cash you won't be making the most of your tax-free opportunity and you won't be able to replace the money you have withdrawn.

If you wish to make deposits or withdrawals, just telephone us on 08457 55 56 57 Mon-Fri: 8am-6pm.

If you are choosing to invest in a Cash ISA, please note that ISAs should be viewed as a longer term investment. While having access to funds will be important to many people, you should remember that there is a limit on the amount you can deposit in your Cash ISA in any tax year. This means that any money you withdraw cannot be replaced.

How is interest on my Cash ISA calculated?

Interest is calculated daily. We will inform you in writing of any interest rate changes (rates are variable).

From time to time we may offer a Fixed Rate Cash ISA. Interest on this type of ISA will also be calculated daily but the rate will be fixed for a specified period of time.

You can choose to have the interest applied to the account either on a monthly or an annual basis.

How much tax relief will I get?

This depends on your individual financial circumstances. Relief from Income Tax on the interest you will receive is determined by the Inland Revenue.

What if I change my mind after opening my account?

You have the right to change your mind about your ISA investment. If you want to cancel your Cash ISA, you have up to 14 days after your receipt of the Savings Terms & Conditions to change or close the account without penalty. This is called the cancellation period.

We can arrange to return the funds to your designated external bank account or transfer your funds to another account held within your Standard Life Bank Savings Plan.

Remember, cancelling your Cash ISA with Standard Life will not automatically cancel your Stocks and Shares ISA if you have one with us.

Are there any charges for this account?

There are no charges attached to this account for normal transactions. All deposits and withdrawals are free. However, there is a £3,600 limit on the amount you can deposit in your Cash ISA in any tax year. This means that any money you withdraw cannot be replaced.

If you close or transfer your Fixed Rate ISA to another provider during the fixed rate period, an exit fee of 120 days tax-free interest will be applied. No exit fee applies to our Direct Access Cash ISA.

Interim statements can be requested at any time for no extra charge.

We do charge for failed direct debits. Please see our tariff of charges for further details.

How do I make deposits & withdrawals with my ISA?

When you open your ISA you will be asked to provide details of your existing bank or building society account. This account will be used for all transactions to and from your Standard Life Bank account and is referred to as your designated external account.

It's simple to withdraw or deposit money. You have two options:

• Telephone banking
  
  Just ring us on 08457 55 56 57, Mon-Fri: 8am-6pm.
  
  You will be asked for a random number from your PIN and a character from your password. Money can be transferred easily from your designated external account into your ISA.
  


• Direct debit
  
  If you wish, you can make regular payments into your ISA by Direct Debit. Call us on 08457 55 56 57 to arrange.
  
  When you're withdrawing money from your ISA, it will be paid into your designated external account. The process will normally take 3 working days but you will receive interest right up until the money is in your designated external account.
  
  Don’t forget that there is a limit on the amount you can deposit in your ISA in any tax year. This means that any money you withdraw cannot be replaced.

Can I transfer money from my Cash ISA to a Stocks and Shares ISA?

Yes, you can transfer the money you have saved in your Cash ISA in the current tax year to a Stocks and Shares ISA. This transfer must be the total amount saved up to the day of the transfer.

When you transfer your current year Cash ISA to a Stocks and Shares ISA, the investment will be treated as if you had invested that money directly into the Stocks and Shares ISA in the first place.

This means you can start saving up to a further £3,600 in your Cash ISA, provided you haven’t already used up your annual ISA investment allowance of £7,200.

You can also transfer some or all of the money you have saved in previous tax years without affecting your annual ISA investment allowance.

How do I transfer the money in my Cash ISA to a Stocks and Shares ISA?

If your Stocks and Shares ISA provider is Standard Life, or you would like to set up a Stocks and Shares ISA with Standard Life, call 0845 272 8810. Our Stocks and Shares ISAs are managed by Standard Life Savings Limited.

If your Stocks and Shares ISA provider is not Standard Life, you should ask your provider to arrange the transfer.

You should not withdraw the money from your Cash ISA and invest it in your Stocks and Shares ISA without going through your provider, as this will count against your annual ISA investment allowance.

Can I transfer between ISA Managers?

How do I get more information?

If you still have a query, give us a call on 08457 55 56 57, where one of our telephone banking operators will be happy to help you. Our opening hours are Mon-Fri: 8am-6pm.

The Facts

• Accounts available to UK residents only over the age of 16.
• For ISA accounts, you must be resident for tax purposes in the UK.
• The tax relief for ISAs may be altered in the future and its value depends on your financial environment.
• Cash ISA Savings products are provided by Standard Life Bank plc.
• Stocks and Shares ISA products are managed by Standard Life Savings Limited.
• ISA documentation is issued by Standard Life Bank plc for the ISA Manager, Standard Life Savings Limited.
• Withdrawals sent by electronic transfer via your external account will normally take 3 working days.
• Minimum deposit £1.
• The tax free rate is the rate of interest payable where interest is exempt from income tax.