Consumers
Factsheet
ISAs - Individual Savings Accounts
|
Contact: Simon Rex Date: 28 Jul 2011 |
Print page | Email |
Cash ISAs are the main cash-based tax-free savings product offered by building societies and they are a particular strength of building societies, with the sector regularly having over 30% of the market.
An Individual Savings Account (ISA) is not a product in its right but, in effect, a tax wrapper around a savings or investment product, which protects the customer’s interest from being taxed. An individual may invest in two separate ISAs in any single tax year - a cash ISA and an investment ISA, which can be with the same or different providers.
Annual subscription limits for 2011/12
The overall ISA subscription limit for 2011/12 is £10,680, of which up to £5,340 can be subscribed to a cash ISA.
Annual subscription limits for 2012/13
HM Treasury announced in October 2011 that subscription limits for ISAs from April 2012 will increase to £11,280, up to half of which (£5,640) can be saved in cash. See the HM Treasury press release below for further details.
The BSA's leaflet on ISAs details how they work and how you can open an account and manage and transfer your money - the leaflet can be found via the link below.
Junior ISAs
In October 2010 the Treasury announced a new tax-free children’s savings account, the Junior ISA, which aims to replace the Child Trust Fund. They are due to be launched on the 1 November 2011. Further information on Junior ISAs can be found in our Junior ISAs factsheet, linked to below
