ISAs

There are two types of ISA: Cash ISAs and Stocks and Shares ISAs (also known as Investment ISAs).

Eligible UK residents can save up to £3,600 a tax year in a Cash ISA, £7,200 in a Stocks and Shares ISA or spread the full yearly allowance of £7,200 across both (subject to a maximum of £3,600 into a Cash ISA).

From 6th October 2009, if you were born on or before 5 April 1960, your yearly allowance increased to a total of £10,200 for a Stocks and Shares ISA or spread the overall yearly allowance of £10,200 across the two separate ISA types subject to a maximum of £5,100 into a Cash ISA.

Cash ISA Saver
Gives you instant access to your money helping you to make the most of your ISA allowance. Open with as little as £1, and earn a variable rate of 2.50% AER / Tax free. It’s easy to open, and because it’s an ISA, you won’t pay any tax on the interest you earn.

Two Year Fixed Rate Cash ISA
Make the most of your tax-free savings by opening a Fixed Rate Cash ISA. Earn up to 3.30% AER/Tax free on balances of £30,000 or more fixed for 24 months from account opening. 2.70% AER/Tax free on balances of £3,000 to £14,999 and 3.00% AER/Tax free on balances between £15,000 and £29,999.

Stocks and Shares ISA
You can invest anything from £1,000 up to your full ISA allowance with our Stocks and Shares ISA.

Share Dealing ISA
Open our Share Dealing ISA online today and you could be dealing in minutes. Choose to manage investments from a range of shares, discounted unit trusts and tax free investments such as gilts and corporate bonds.

Please remember that the value of your investment can go down as well as up and you may get back less than originally invested.

ISAs explained

Not sure which ISA is right for you? Compare ISAs.

What is an ISA and what are the benefits?

An ISA (Individual Savings Account) is simply a way of packaging some of the money you save or invest so that the earnings you receive are not  taxed. With a Cash ISA you don't have to pay tax on the interest and with a Stocks and Shares ISA you have no personal liability to income tax or capital gains tax.

Cash ISAs are simple to open and in many ways no more complicated than a regular savings account. If you are keeping your savings in a regular bank or building society account, you could be paying unnecessary tax on the interest.

Which ISA is right for me?

There are two types of ISAs: a Cash ISA - which is a savings account where you don’t pay tax on the interest you earn on your savings; and a Stocks and Shares ISA, which lets you put money into a range of investments – there is no tax to pay on any future capital growth or income that you receive.  Unlike other tax favourable investments such as pensions, you can withdraw funds from your ISA at anytime as there is no maturity or holding period.

The value of the tax advantages of an ISA depends on your personal circumstances and tax rules can change.

When deciding on your choice of ISA, you should consider:

1. How much money you have to save or invest.
2. How long it will be before you need this money.
3. Whether you are willing to tolerate the risk associated with investing in the stock market in exchange for a possibly higher return.

There is no guaranteed rate of return when investing in a Stocks and Shares ISA. The market can go down as well as up and you may get back less than you originally invested. Be honest about your risk tolerance.

Top tips: how to make the most of your ISA

• Think about whether you've got money tucked away in current accounts or other savings accounts that you could put into an ISA to obtain the current ISA tax advantages.
• Start your ISA saving early so that you aren't rushing to get everything sorted out as the tax year-end looms.
• If you have a Cash ISA, make sure you understand the interest rate, if you can get access to your money and how quickly you can take your money out without charge. Is the interest rate fixed or variable or does it track the base rate? If it's fixed you can be sure of exactly how much interest you'll earn.
• Always try to use the maximum annual ISA allowance in every tax year so you can benefit from any tax advantages on the money you save or invest. Any unused ISA allowance cannot be carried forward to the next tax year.
• Be aware of your risk tolerance and how quickly you want your money back when selecting the type of investment you'll make with the money in your Stocks and Shares ISA. As a general rule, the sooner you want your money back, the less risk you may wish to take. If you have paid in the full allowance in one tax year, any funds withdrawn can’t be replaced.

Not sure which ISA is right for you? Compare ISAs.

ISAs explained

**£5,100 a tax year if you were born on or before 5 April 1960.
*** You can invest up to a total of £10,200 in a Stocks and Shares ISA or spread the full £10,200 across the two separate ISA types (subject to maximum of £5,100 in a Cash ISA) if you were born on or before 5 April 1960.
†Minimum lump sum payment
+ You can make withdrawals but you’ll be charged for early withdrawals.

What’s an ISA?
How much can I save in an ISA?
How many ISAs can I have?
Can I move my ISA from another provider to a Lloyds TSB ISA?
Can I close an ISA?
What happens if I don’t use my yearly allowance?
How can I find out about my interest rate?

What’s an ISA?

Individual Savings Accounts are a flexible tax-free way to invest in cash, stocks and shares (including Unit Trusts, OEICS & Investment Trusts), and life insurance.

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How much can I save in an ISA?

If you are a UK resident, you can save up to £3,600 a tax year in a Cash ISA, £7,200 in a Stocks and Shares ISA or spread the overall yearly allowance across both. (subject to maximum of £3,600 in a Cash ISA)

From 6th October 2009, and if you were born on or before 5 April 1960 you can invest up to a total of £10,200 in a Stocks and Shares ISA or spread the overall yearly allowance of £10,200 across the two separate ISA types (subject to maximum of £5,100 in a Cash ISA).

From 6 April 2010 all eligible UK residents will be able to invest up to a total of £10,200 in a Stocks and Shares ISA or spread the overall yearly allowance of £10,200 across the two separate ISA types (subject to a maximum of £5,100 in a Cash ISA).

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How many ISAs can I have?

You can only put money into one Cash ISA and one Stocks and Shares ISA each tax year, but there are no limits on the number of different ISAs you can hold over time.

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Can I move my ISA from another provider to a Lloyds TSB ISA?

An ISA must be transferred directly between the old provider and the new provider. You cannot make this move yourself by closing the first ISA and paying the money into a new ISA. Instead, you must ask the new ISA manager to arrange the transfer.

A cash ISA can be transferred into either another cash ISA or into a Stocks and Shares ISA.

A Stocks and Shares ISA can only be transferred into another Stocks & Shares ISA. This flexibility is great, but remember, different risks apply to Stocks and Shares ISAs and you are not able to move funds from a Stocks and Shares ISA into a Cash ISA.

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Can I close an ISA?

You can close your ISA and withdraw funds at any time. If you wish to change ISA providers, you should transfer your ISA to ensure you keep your tax free allowance and keep in mind that you can only reinvest subject to your yearly ISA allowance.

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What happens if I don’t use my yearly allowance?

If you do not use your allowance for a tax year, it is lost and does not roll over to the next year. This means it is important to use up your allowance each tax year to get the full benefit of your ISA.

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How can I find out about my interest rate?

You can find out the current interest rates for your ISA at any of our branches, by telephoning us on the Interest Rates Helpline on 0845 300 0032 or online.

ISAs explained 

Not sure which ISA is right for you? Compare ISAs.