Managing your ISA
Answers to your common questions
What is an ISA?
- An ISA, or Individual Savings Account, can offer a very attractive way to help you
pay less tax on your savings. Whether or not you pay tax on your income or other
savings, you won't have to pay any personal income tax on ISAs.
- You can only put money into one cash ISA and one stocks and shares ISA each tax
year, but there are no limits to the number of different ISAs you hold over time.
You can invest in a cash ISA and a stocks and shares ISA in the same tax year.
- Current ISA regulations allow you to invest up to £10,680 in any one tax year
by choosing one stocks and shares ISA or a combination of one cash ISA and one stocks
and shares ISA. You can save up to £5,340 in a cash ISA.
- You can transfer all of the money you've saved in the current tax year and some
or all of the money saved in previous tax years.
- You'll also be able to transfer money saved in a cash ISA in the current tax year,
or previous tax year to a stocks and shares ISA.
- If you open a cash ISA and subsequently transfer it to a stocks and shares ISA,
you can deposit in a cash ISA for the current tax year as long as the total investment
limits aren't exceeded. Such transfers must be the whole amount saved in the current
tax year in that cash ISA up to the day of the transfer. These transfers are subject
to terms and conditions.
- Tax treatment depends on your individual circumstances and may change
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Who can save in a BM Savings cash ISA?
To save in a BM Savings cash ISA, you must:
- Be resident and ordinarily resident in the UK for tax purposes, or if not so resident,
either perform duties which are treated as being performed in the UK or be married
to, or in a civil partnership with, a person who performs such duties
- Be 16 years old or over
- Not have subscribed to another cash ISA in the same tax year
If you wish to apply online for one of our cash ISAs you must be at least 18 years
old or over. If you�d like to apply for one of our postal ISAs by phone please call
0845 028 2828
If you wish to apply for our internet cash ISAs you must be 18
years old or over and hold a current UK bank or building society account which accepts
direct debits and which you hold a chequebook for.
ISAs cannot be held in joint names or by businesses, clubs or associations.
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How much can I save in an ISA?
Current ISA regulations allow you to invest up to £10,680 in the 2011 / 2012
tax year by choosing one stocks and shares ISA or a combination of one cash ISA
and one stocks and shares ISA. You can save up to £5,340 in the 2011 / 2012
tax year in a cash ISA.
What happens if I don’t use my yearly allowance?
You won't be able to carry forward any unused portion to the next tax year. This
means it is important to use up your allowance each tax year to get the full benefit
of your ISA allowance.
I have already opened an ISA with another ISA provider. Can I open an ISA with BM
Savings to use the rest of my yearly allowance?
No, you can only put money into one cash
ISA each tax year.
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How do I apply for an internet ISA?
You can apply online for our postal and internet cash ISAs, providing you are 18
years old or over.
Otherwise you can apply by phone or our non internet cash ISAs.
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What happens once I've applied online for an internet ISA?
If you're a new internet customer
- We'll send an acknowledgement email confirming your application has been submitted
and a letter confirming that your Linked Account has been set-up
- We'll send a letter asking for a cheque for the full amount you'd like to deposit,
a confirmation slip which you must sign and return and any identification documents
that may be required
- Once these items have been returned, your cheque will be paid to your account
- We'll send a username letter and an access token email to you once your cheque has
been paid in
- You'll need these to activate your account online
- We'll also, separately, send you an ISA certificate.
If you're an existing internet customer
- We'll send an acknowledgement email confirming your application has been submitted
and a letter confirming your Linked Account has been set-up
- If you've opted to send a cheque for the full amount you wish to deposit, send this
to us in the post with your account number written on the reverse.
- If you've opted to pay by direct debit from your Linked Account, we will request
payment directly from your account.
- Once payment has been received, we'll send you a welcome letter and your ISA certificate.
You can log onto your account and view this at anytime using your existing username
and passwords.
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How do I top up my BM Savings cash ISA?
Providing your existing ISA allows top ups, i.e. is not a fixed rate ISA or index
linked ISA where the issue has closed, you can top up your ISA until 5 April 2012.
Please ensure cheques are received by 5 April 2012 at the latest to be credited
to the current tax year.
Alternatively you could arrange a payment to be sent electronically from your bank,
please check the timescales for receipt of payment to ensure we receive this before
the 5 April.
For transfers from existing BM Savings accounts this can be actioned the same day.
Please ensure we receive instructions before 3pm on 5 April for transfers to be
credited to your ISA in the current tax year. If you didn't subscribe in 2009/2010
tax year to your BM Savings ISA we will require a signed declaration or new application
form, if you are unsure please call 0845 602 2828.
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Can I close an ISA?
You can close a cash ISA within 14 days of your application being completed and
still open another cash ISA within the same tax year. After the first 14 days, you
can still close your account at any time and withdraw your money, but you will lose
your tax free entitlement if you don't transfer to another ISA, and depending on
you ISA conditions, you may be subject to an early withdrawal charge.
If the reason for closing your ISA is to change to another provider, you should
transfer your ISA to ensure
you keep the favourable tax treatment. Please see
Can I transfer current or previous ISA subscriptions question for more detail
on transfers.
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Can I open a cash ISA and subsequently close it, then open another in the same tax
year?
You can close a cash ISA within 14 days of your application being completed. If
you do so within 14 days you can still open another cash ISA within the same tax
year, providing you do so within that tax year.
After the first 14 days, you can still close your account at any time but you may
lose your tax free entitlement for that tax year, unless you transfer to another
ISA. If you'd like to close your account at any time, please write to our savings
team at:
BM Savings team
Birmingham Midshires
PO Box 81
Pendeford Business Park
Wobaston Road
Wolverhampton
WV9 5HZ
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Can I transfer current or previous ISA subscriptions?
An ISA must be transferred directly between the old provider and the new provider.
You cannot make this move yourself by closing the first ISA and paying the money
into a new ISA as you will lose your ISA's tax free status.
A cash ISA can be transferred into either another cash ISA, or into a stocks and
shares ISA, but you are not able to move funds from a stocks and shares ISA into
a cash ISA.
Previous ISA subscriptions can be transferred in part, but current year subscriptions
must be transferred in full.
Transferring your ISA from another provider to an existing BM Savings cash ISA
Providing your existing BM Savings cash ISA allows transfers in, you can request
the transfer by completing the
ISA transfer form and returning it by post to the address within the form.
This can only be used if you have an existing cash ISA with BM Savings.
The transfer process should take 15 bank working days from receipt of your transfer
form. If the transfer is going to take longer we'll pay you interest at your new
rate from the 16th bank working day, as long as your previous ISA was ready to be
transferred (i.e. not subject to a notice period or fixed term) when your existing
provider received our request. For more information about the new ISA Transfer Guidelines,
please visit the BBA Website.
Transferring your BM Savings cash ISA to another provider
You'll need to contact the ISA provider to arrange the transfer. If your account
is subject to closure/withdrawal restrictions, such as a notice period, or is a
fixed rate account which has yet to mature, transferring may result in a loss of
interest if you wish to transfer before the end of the restriction period. Please
check your account details before requesting a transfer. Also, any subscriptions
you have made this tax year must be transferred in full.
Moving your existing BM Savings cash ISA to another BM Savings cash ISA
We currently only offer this facility for our postal ISAs. If you want to move your
existing BM ISA to a BM Savings postal cash ISA, you can apply online or by calling
us on 0845 602 2828 for an application form.
On the back of the application form, select 'I'd like to transfer funds' from my
existing BM Savings ISA and quote your current ISA account number.
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Can you tell me if you are members of a Compensation Scheme?
We are members of the Financial Services Compensation Scheme. For further information
about the scheme (including the amount covered and eligibility to claim), see our
Financial
Services Compensation Scheme section or call us on 0845 602 2828, refer
to the FSCS website at www.FSCS.org.uk or
call 020 7892 7300 or 0800 678 1100.
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How do I make a complaint?
To make a complaint about your ISA please see our
complaints procedure.
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