for savers

ISAs: Interesting and tax efficient ways to save

ISAs inside out

Individual Savings Accounts (ISAs) have been available since 1999 and can be a great, tax-efficient tool for saving. If you've been investing your full allowance in one of the many schemes available since the start, your savings pot could already be considerable. It's no wonder savers are always on the lookout for the best ISA transfer rates and here at The Cambridge we offer some great savings products to suit your needs.

If you're considering an ISA transfer or you want to start saving into a new ISA account, we have all the information you need and this page should answer any questions you may have.

The first thing you should know is that the Financial Conduct Authority is the independent financial services regulator and requires us, The Cambridge Building Society, to give you important information to help you decide whether one of our cash ISAs is right for you. You should read this page carefully so that you understand what you are buying.

 

What is an ISA?

The Government’s tax-efficient savings scheme, the Individual Savings Account (ISA) is a special type of account that offers a range of savings options.

There are four types of ISA: cash, stocks and shares, innovative finance, and Lifetime ISAs.

The Cambridge currently offers cash ISAs only. You can see our current range of cash ISAs here

 

Subscription limits

The ISA allowance is £20,000 for the tax year 6th April 2018 to 5th April 2019. You can split the £20,000 allowance across any combination of the four types of ISA, however a maximum of £4,000 can be invested in a Lifetime ISA.

Tax treatment and rate of interest payable will depend on individual circumstances and may change in the future.

 

Are you eligible for an ISA?

Currently anyone who is a UK resident, for tax purposes, can subscribe to the ISA scheme. To comply with the ISA regulations, you must be aged 16 or over if subscribing to a cash ISA.

 

Important restrictions

By investing in a cash ISA, you’ll be limiting the amount you can invest in the other types of ISAs.

You can transfer your ISA between providers - please refer to your ISA product terms and conditions for any specific rules relating to ISA transfers.

Our ISAs are not flexible. Once you have made a subscription to your ISA this will count towards your annual ISA allowance for that tax year. If you invest the maximum cash ISA subscription for the tax year, you cannot top up your savings after making a withdrawal.

If you do not deposit up to the maximum subscription in any tax year, you cannot carry over the unused amount to the following tax year.

 

Paying money in and taking money out

For full details about how your chosen ISA works it’s always best to refer to the product terms and conditions.

You can continue your ISA each tax year without the need to re-apply for a new account, subject to product terms and conditions, provided you make at least one deposit during each tax year. This means that you will be unable to subscribe to a cash ISA with another provider during that tax year.

You can pay in cash and cheques and make debit card payments at any of our branches or you can transfer funds from an existing Cambridge Building Society account. You can also operate your account via post and make debit card payments over the phone.

If you want to make regular deposits we can help you to set up a standing order from your bank account.

Any payments we receive that exceed the annual subscription limits will be returned to you by cheque.

You can withdraw cleared funds from your account at any time by using your passbook at any of our branches. You can withdraw up to £500 in cash and up to £250,000 by cheque. Please check the withdrawal arrangements for your chosen product.

 

 

Preparing for your Cambridge ISA

Before opening a Cambridge ISA, please ensure you read: the product specific and special terms and conditions relevant to the product you have chosen; and the separate ‘Terms and Conditions for Savers’ booklet.

These contain important information about your account and how it operates. For new customers, under regulations for prevention and detection of financial crime, we’ll need to verify your name and address. We use an electronic verification system to do this, however in certain cases we’ll need further proof of your identity.

 

Cash ISA transfers

You may transfer ISA savings from an existing Cambridge Building Society ISA into a new ISA with The Cambridge. You can also transfer an ISA to The Cambridge from another provider. It’s important to read your product terms and conditions to check that transfers in from another ISA provider are allowed for your account type.

If you're searching for the best cash ISA transfer for your circumstances you probably already know that transferring your savings is a relatively simple process. However, the transfer must be carried out correctly or you risk losing the tax-efficient benefits you currently enjoy.

 

Maintain the tax status of your savings when making an ISA transfer

When transferring money you’ve invested in an ISA this current year, you must transfer all of it. For previous years, you can choose to transfer all or part of your savings.

It is important to use the correct procedure and not withdraw the funds yourself. If you make the withdrawal, the funds will no longer be considered as tax-free savings and can only be reinvested into an ISA as part of your current or future annual ISA allowance.

It is important that you have read and understood all the terms and conditions for your chosen ISA product so you can be sure that that transfers in from another ISA provider are permitted on your account.

 

Three steps for a successful ISA transfer

Step 1 – Complete the relevant Transfer Request Form

Different products require different forms. Depending on your choice of ISA you will need either a ISA Transfer Request Form or a Stocks and Shares ISA Transfer Request Form – please download and fill out one of these forms. The instructions are clear and simple to follow, but if you need help filling them in, why not visit one of our branches where a member of our team will be happy to help or call us on 0345 601 4021.

Step 2 – Send your form to The Cambridge

Once your ISA Transfer Request Form is complete, send it to FREEPOST, THE CAMBRIDGE BUILDING SOCIETY (please use capital letters and there's no need to use a stamp).

Step 3 – We notify your existing provider and manage the whole process for you

Our team at The Cambridge will check your completed ISA Transfer Request Form and ensure all the necessary details are included. We will send the form to your current ISA provider and manage the whole transfer process on your behalf, from start to finish.

When the transfer is complete we'll send you formal notification. ISA transfers should take no longer than 15 working days for a cash ISA and 30 working days for a stocks and shares ISA.

More information on the cash ISA transfer process can be found in the Building Societies Association’s guide.

If you have any queries about the process please contact us on 0345 601 4021.

 

You have 14 days to change your mind

If in the first 14 days of opening your account, you decide that the account you’ve chosen isn’t right for you, you can have your money back – without penalty. We’ll arrange to close the account and return your money or to switch your funds to another of our savings accounts.

We’ll pay you interest on the balance of your account up to the day before closure at the appropriate ISA rate. Your account won’t be classed as an ISA.

 

Financial Services Compensation Scheme

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society is unable to meet its financial obligations.

For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your nearest branch, email us at savings@cambridgebs.co.uk, refer to the FSCS website www.fscs.org.uk or call the FSCS on 020 7741 4100 or 0800 678 1100. Please note that only compensation queries should be directed to the FSCS.

 

Complaints

We’re committed to providing you with a first class customer service. However, there may be occasions when you feel you have cause for complaint. If so, please tell us about it straight away – and we’ll do all we can to put things right.

We’ll investigate your complaint thoroughly and aim to resolve it as quickly and amicably as possible.

Our complaints procedure can be found here.

 

 

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