ISAs, or Individual Savings Accounts, were set up by the government to encourage people to save. A Cash ISA entitles you to earn a return on savings completely tax free, over the period of a tax year which runs from April 6th of one year to April 5th of the following year. Unlike our other savings accounts, the Cash ISA has a projected dividend rate that is paid quarterly.
At a glance:
- Tax free savings.
- Instant access and a great return on your savings.
- Payroll deduction is available.
- We can issue cheques on request or transfer funds electronically to your bank account giving you easy and convenient access to your money.
- Online access to your account.
- All adult savings accounts include Life Cover up to age 65 at no extra cost to yourself meaning that in the event of your death your savings balance would be doubled. (Terms and Conditions apply)
- Maximum annual limit for tax year the 2011/2012 is £5,340.
- Transfers from other Cash ISA providers are suspended due to us preserving the dividend for all members.
Who can have one?
ISAs are available for adult members over the age of 16. You must be a UK resident and ordinarily residing in the UK or if not so, be performing duties as a Crown employee serving overseas and paid out of the public revenue of the UK (typically a serving member of the armed forces, or a diplomat), or be married to, or in a civil partnership with such a person.
Most importantly, you must not have subscribed to another Cash ISA in that tax year.
What is the rate of return?
Until 30th April 2012, we are pleased to announce that you will receive 3% AER (variable) on your Cash ISA, reflecting the competitive year we have had so far. This is paid quarterly and dividend is paid gross and is not subject to any tax which means you don’t have to declare it on your tax return. This is particularly beneficial for those on a high income tax rate.
How much can I pay in?
The Cash ISA limit for the tax year 2011/12 is £5,340. This is the maximum you can deposit into your account over the tax year so for example, if, during the tax year 2011/12 you were to save £1000 and then withdraw it, you would only be able to deposit a further £4,340 into the account for the rest of the tax year. You only need to keep a minimum balance of £1 in your No1 CopperPot Cash ISA in order to keep it open and ensure it is fully operating.
Can I transfer an existing ISA into a No1 CopperPot ISA?
Due to a massively successful year last year and in the interests of protecting members' dividend, we are not currently accepting ISA transfers from other providers as we are fully subscribed.
How do I pay in?
- Lump sum deposit made either by cheque or debit card payment.
- Payroll deduction or Direct Debit.
- Transfer from another No1 CopperPot account.
What if I need to withdraw the money?
Unlike some other providers, a No1 CopperPot ISA lets you withdraw without loss of interest or penalty however, once you have paid into your ISA, if you withdraw that money you cannot replenish it within the same tax year. For example, if you had saved £1,000 during the tax year 2011/12 and then withdrew it, you would only be able to pay in a further £4,340 before you reached the limit.
What other benefits do I get with my No1 CopperPot ISA?
Perhaps most importantly your ISA is also included in your life cover up to age 65 (terms and conditions apply) so all your savings with us will be doubled and paid out to your next of kin should the worst happen. This is exclusive to credit unions and is at absolutely no extra cost to you.
