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.
Please note: due to the success of this product, it is now fully subscribed and for the time being, new applications cannot be accepted.
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 £3,600.
- Transfers from other Cash ISA providers are temporarily suspended due to us being fully subscribed.
Who can have one?
ISAs are available for members over the age of 16 however, due to the huge recent demand we have temporarily closed the product for new applications and transfers.
What is the rate of return?
Until 30th April 2010, 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 current Cash ISA limit for the tax year 2009/10 is £3,600 (see changes in the budget). This is the maximum you can deposit into your account over the tax year so for example, if you were to save £1000 and then withdraw it, you would only be able to deposit a further £2,600 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?
Again, 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 and then withdrew it, you would only be able to pay in a further £2,600 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 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. To find out more and read the terms and conditions, click here.
