ISAs explained

What type of ISA can I have?
In each tax year every individual may only have 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?
A cash ISA will invest your money in one of a number of cash based investment products which are designated by the government. SRBS offers a cash ISA whereby your cash is invested in a share account with us. A cash ISA will be managed by a single ISA provider. You cannot subscribe to two different cash ISAs in the same tax year. In subsequent tax years you may continue to invest in an existing cash ISA or may open a new cash ISA with a different provider provided only that you do not subscribe to two different cash ISAs in the same tax year.

ISA Investment Limits

Since 6th April 2010 the limits have been £10,200 each tax year (all ISA's together), £5,100 (cash ISA's) and £10,200 (Stocks and shares ISAs).

  

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 £5,100, 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 £5,100 into the account in the tax year in question.

From April 2008 ISA’s are available indefinitely – there is no set end date for the scheme.

The Stafford Railway Cash Mini ISA
Our ISA accounts do not meet the "Stakeholder" standards

 

Other important information
The interest rate on cash ISA is variable and will move up and down in line with changes in market rates generally. However in common with other financial institutions the Society is required to act prudently to maintain a balance between assets and liabilities. This will sometimes mean that changes in ISA rates may be by a little more, or a little less than other market rates.

• 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
• Investors are warned that the favourable tax treatment of ISAs is dependent on government legislation and HMR&C guidelines. There is no guarantee that this favourable treatment will be maintained in future.
• 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 but cannot transfer the balance of a stocks and shares ISA into a cash ISA.
• A minimum balance of £250 applies to all applicants who reside outside the SRBS local area.
• 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.
• SRBS does NOT accept nor make partial transfers of Cash ISAS to or from other providers.
• SRBS does NOT accept ISA transfers in except from existing members and people living in the local area.
• SRBS 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 SRBS can be found elsewhere on this web site or by contacting SRBS at the address shown below.