Cash ISA Guide 2014-15

Make the most of your 2014-15 Cash ISA allowance

What is an ISA?   |  How much is the ISA allowance?  |  How can you use your ISA?  | ISA transfers  |  Start saving early 

Ideas for your ISA



ISAs (Individual Savings Accounts) are one of the only means of saving without having to give a cut of the profits to the taxman.


What is an ISA?

Using an ISA means you pay no income or capital gains tax on any interest or returns you make.

An ISA is not a type of investment; it is an amount of money that you can protect from tax each year. Where you save or invest this money is up to you.


How much is the ISA allowance?

For the 2014/15 tax year the total ISA allowance is £15,000. 

Since April 2011, the government has set the ISA allowance to rise in line with inflation each year.

Either the full amount can be saved in a stocks and shares (investment) ISA or some in a cash ISA and some in a stocks and shares ISA. Alternatively, you can just save using the cash ISA allowance.

The ISA allowance is per person (age limit is over 16 for cash ISAs and over 18 for stocks and shares ISAs).

Savings image

How can you use your cash ISA allowance?

To make the most of your cash ISA allowance, you can choose the right kind of savings product to suit your needs. If you want the highest savings rates, then there is a range of fixed rate cash ISA of 1-5 years. Or if you don't want to lock your money away, you can opt for an instant access cash ISA. Alternatively, you can use structured deposit ISAs which offer potentially higher returns than fixed rate savings, but these returns are dependent on the performance of an index, such as the FTSE 100. Use the tables below to compare our latest selections of market-leading cash ISAs:

Cash ISA Selection
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Retirement Deposit PlanInvestec Bank plcyes6 years

3.75%

per year, plus 22.5% at end of term

More Info >
  • 3.75% annual payments from capital
  • 77.5% remainder of initial deposit paid at end of term
  • Potential 22.5% growth return at end of term, if the Index is higher than 90% of Initial Value
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA and  ISA Transfers 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Only available for new ISA investments or ISA transfers, not direct investments
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
6 Year Defensive Deposit PlanInvestec Bank plcyes6 years

24%

at end of term

More Info >
  • 24% fixed return if the Index is higher than 95% of its Initial Level
  • Capital protected
  • Low minimum - £3,000
  • Medium/longer term alternative to fixed rates
  • Available for Cash ISA,  ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
4 Year Deposit PlanInvestec Bank plcyes4 years

12%

at end of term

More Info >
  • 12% fixed return if the Index is higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA, ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital

Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

ISA transfers

Transferring previous years’ cash ISA savings into an ISA account with a higher rate could significantly boost any tax-efficient interest you earn. Transferring is easy, but you must make sure that you transfer properly.

If you encash your previous years’ ISA allowances they will lose their tax exempt status and you will undo your previous good work. All you need to do is request a transfer form for the new account, fill it in, and your new ISA provider should do the rest for you.

You may wish to consolidate any existing ISAs into one new ISA account to maximise any increased returns, because some cash ISA providers offer tiered interest rates, so the more you save the higher interest rate you get. Another thing to bear in mind is that you can transfer your existing cash ISAs into stocks & shares ISAs, but not the other way round, so once your cash ISA has become a stocks and shares ISA, you can't change it back.


Start saving early

The earlier you save your ISA allowance in a tax year, the more time there is for it to generate interest, protected from tax.


Ideas for your ISA

There is a wide range of savings options to choose from for your cash ISA allowance. use the tables we've provided to discover some of the latest deals on fixed rates, instant access and structured deposit alternatives.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.