ISAs explained


Not sure which ISA is right for you? Not even sure if an ISA is right for you? Here’s some information which should point you in the right direction about this great way to save tax free. If you’re still not sure, please ask.

ISA limits for the current tax year are £20,000 and £4,128 for Junior ISAs.

What type of ISA can I have?
As of 1st July, every individual may only subscribe to ONE stocks and shares ISA and, subject to investment limits, ONE cash ISA.

What is a Stocks and Shares ISA?
A Stocks and Shares ISA allows investment in a range of qualifying investments which are designated by the government. It will be managed by a single ISA provider who may also offer cash ISAs. If you invest in a Stocks and Shares ISA in one year, you may invest with different providers in subsequent years provided that you only subscribe to one Stocks and Shares ISA in any one tax year. Stafford Railway Building Society does not offer Stocks and Shares ISAs.

What is a Cash ISA?
Stafford Railway Building Society offers a cash ISA whereby your cash is invested in a share account with us. You cannot subscribe to two different cash ISAs in the same tax year, but you can transfer your ISA to a different ISA provider. In subsequent tax years you may continue to invest in your existing cash ISA or alternatively subscribe with another provider.

How much can I invest?
You can invest £20,000 in an ISA in the 2016/2017 tax year.

IMPORTANT NOTE: For Cash ISAs, the limits above represent the maximum you are allowed to pay in during the tax year in question. For example, if you open a Cash ISA with a deposit of £20,000, but later in the same tax year you withdraw £1,000, you will not be allowed to pay into the account again until the following tax year. This is because you have already paid the maximum allowed sum of £20,000 into the account in the tax year in question.

How much can I invest in a Junior Cash ISA?
For the tax year ending 5th April 2017 the maximum amount you are allowed to pay into a Junior Cash ISA is £4,128. 

IMPORTANT NOTE: Withdrawals are not allowed until the child reaches the age of 18. 

Other important information

  • The interest on a Cash ISA is variable.
  • Withdrawals may be made over the counter or by post. The request to withdraw funds may be made using a Society withdrawal form (or a letter signed in accordance with the mandate) and must be accompanied by the passbook.
  • ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan.
  • At the request of the investor (and within the time stipulated by them) an ISA, with all rights and obligations of the parties to it, shall be transferred to another ISA manager.
  • Mini Cash ISA and Tessa only ISA (TOISA) accounts have been reclassified as Cash ISA accounts and subject to the same terms and conditions.
  • ISAs are available indefinitely – there is no set end date for the scheme.
  • You may transfer the balance of a cash ISA to a stocks and shares ISA and vice versa.
  • You will be notified if, by reason of any failure to satisfy the provisions of the ISA regulations, your ISA has, or will, become void.
  • Stafford Railway Building Society does make partial transfers of previous years subscriptions of Cash ISAs to other providers and accepts partial transfers from other providers.
  • Stafford Railway Building Society will also accept full balance transfers of Cash ISAs from other providers. ISA transfers in are currently suspended until further notice.
  • If you ask us to transfer your ISA to another provider, we will make the transfer within 15 days provided that you return your passbook immediately and have fully completed the transfer documents needed.
  • Our ISA accounts do not meet the ‘Stakeholder’ standards.
  • Stafford Railway Building Society is obliged, each year, to submit details of your ISA subscriptions to HM Revenue and Customs.

Further information about ISAs and other investment accounts offered by Stafford Railway Building Society can be found elsewhere on this website or by contacting the Society at the address shown below.

Further information about transferring your ISA can be obtained by following this link:
‘Transferring your cash ISA’ – consumer leaflet

Call us on: 01785 223212*