Notice Isa
No matter how much interest you earn on your savings, you won't pay a penny in tax. Although there are different types of ISA, the Scarborough Building Society's Notice ISA is a Cash ISA and is perfect for savers who want to avoid the uncertainties of the stock market.
Individual Savings Accounts or ISAs are simple tax free savings accounts which replaced TESSAs and PEPs in April 1999. There are two types of ISA - Stocks and Shares ISAs and Cash ISAs. Further enhancements to ISAs came into effect from 6 April 2008 which mean that investors can now subscribe up to £7,200 in each tax year.
Subject to this overall limit, the amount that you can put into each type of ISA in a tax year are as follows; Stocks and Shares up to £7,200, Cash ISA up to £3,600.
So for example, you could subscribe
- £3,600 to a Cash ISA and £3,600 to a Stocks and Shares ISA
- £2,000 to a Cash ISA and £5,200 to a Stocks and Shares ISA
- Nothing to a Cash ISA and £7,200 to a Stocks and Shares ISA
What type of ISAs do Scarborough Building Society offer?
We can provide an easy access, regular savings, 30 day notice or a fixed rate Cash ISA. Our Cash ISAs invest only in the cash element of an ISA and have all the advantages of a traditional savings account, yet allow all interest to be paid tax free. This means that you do not have to get involved in stocks and shares if you don't want to and you can watch your savings grow with total peace of mind. But if you do want to take advantage of the potential higher growth from stocks and shares, we can help you arrange that through our partnership with Legal & General.
What rate of interest will I earn?
Rates effective at 1 May 2008.
| Interest Rates | |||
|---|---|---|---|
| To 31 March 2009 | Balance | Gross % p.a.* | AER** |
| Annual | £1,000+ | 6.05% | 6.05% |
| Monthly | £1,000+ | 5.85% | 6.01% |
All rates are variable. Interest is paid tax-free which means that it is exempt from Income Tax. Annual rate until 31 March 2009 is guaranteed to pay at least the Bank of England base rate plus 0.25%. Monthly rate paid until 31 March 2009 is guaranteed to pay at least the Bank of England base rate plus 0.05%. |
|||
| To 31 March 2010 | Balance | Gross p.a.* | AER** |
| Annual | £1,000+ | 5.00% | 5.00% |
| Monthly | £1,000+ | 4.80% | 4.91% |
All rates are variable. Interest is paid tax-free which means that it is exempt from Income Tax. Annual rate until 31 March 2010 is guaranteed to pay at least the Bank of England base rate. Monthly rate paid until 31 March 2010 is guaranteed to pay at least the Bank of England base rate less 0.20%. |
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How much can I invest?
With a Notice ISA you can start off with as little as £1,000 and invest up to the maximum of £3,600 in any one tax year. The tax year runs from the 6th April to 5th April. You can also transfer any investment held in a Cash ISA elsewhere to Scarborough Building Society, whilst the issue remains open. (In order to transfer your ISA from your current provider to Scarborough Building Society, please complete a transfer form and send it to your current provider.)
Can I add to my account ?
You can make additions up to the annual maximum of £3,600. You cannot replace withdrawn funds.
Can I make withdrawals?
Before 1 April 2010, if you give 30 days notice of intention to withdraw money you can have penalty free access to it. From 1 April 2010 your account automatically transfers into our easy access Cash ISA. Closure at any time until 31 March 2009 is subject to a 30 day notice charge. You must keep a minimum balance of £1,000 in your account. If the balance of your account falls below the minimum, the interest rate will change to the Society's variable base savings rate applicable at that time. You cannot replace withdrawn funds.
What happens after 31 March 2010?
Your Notice ISA will mature on the 31 March 2010. At this time we aim to contact you. Once your account has matured it will automatically be transferred into our easy access Cash ISA (details available on request), or another tax free account that we consider is similar and available at that time.
Can I transfer my current Cash ISA from another provider to Scarborough?
You can transfer your existing Cash ISA to a Notice ISA whilst the issue remains open by filling in the an ISA transfer form and sending it to your current provider. Your current ISA provider will then complete the transfer documents and send them direct to us. However, you must still complete our own application forms before the transfer is processed by us. This form should be sent to us directly.
ISA transfers must consist of either:
- All of the current year subscriptions; and/or
- All or part of any previous year subscriptions
If you transfer an ISA containing subscriptions from the current tax year to us but have not made use of your full £3,600 allowance, don't worry - you can top up your Notice Cash ISA at any time subject to the annual maximum.
Can I transfer my current Cash ISA from the Scarborough to another provider?
Yes, by providing us with your instructions, we can arrange to transfer your ISA to another ISA Manager, but please check the new ISA Manager can accept your transfer before confirming your wishes to us. We will complete the transfer in no more than 30 days following your instruction, and this will be subject to the 30 days closure charge.
Do I have to make a new application for a Cash ISA each year?
No, you can simply top up your existing Cash ISA with us, making use of your annual limit. However you will need to ensure that at least £1 is paid in each tax year, so that you do not need to re-apply for a new ISA each year. This does not include any interest that may be added to your account.
How do I find out more about stock market ISAs?
Simply speak to one of our customer advisers. Although we do not offer a Stocks and Shares ISA, we are able, through our partnership with Legal & General, to provide this service.
Related terms & conditions
Please ensure you have read all the above terms & conditions, as well as all terms and conditions contained within the terms and conditions section.
How can I apply for an account?
- Please ensure you have read and understood all of the above terms & conditions.
- Then either complete our Notice ISA application form and our ISA declaration form, call in to your nearest branch, or telephone Investments Direct on 0845 634 3760†.
- If you are transferring your ISA please also complete an ISA transfer form and ISA transfer declaration form.
- Notice ISA is available through the Society’s branches and Investments Direct and may be withdrawn at any time without notice.
* The gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. The net rate is the rate of interest which would be payable after allowing for the deduction of income tax at the specified rate (the net figures quoted assume liability at a tax level of 20% for illustrative purposes only).
** AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Please note that the account specific Terms and Conditions may preclude you from earning these rates.