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 or capital gains tax on ISAs.
- ISAs have been designed to offer a range of savings and investment options, and are currently available in two types, Cash ISAs and Stocks and Shares ISAs - cash and equity/stock market investments (shares, unit trusts, gilts etc).
- You can only invest in one Cash ISA each tax year. You can invest in a Cash ISA in the same year that you invest in a Stocks and Shares ISA.
- Current ISA regulations allow you to invest up to £10,200 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 invest up to £5,100 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 reinvest 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.
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Who can invest in an BM Savings Cash ISA?
To invest in an BM Savings Cash ISA, you must:
- Be a UK resident and ordinarily resident in the UK for tax purposes or, if not a resident, either performing 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 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 do I apply for an internet fixed rate 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 fixed rate 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 invest, 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 invest, 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 transfer the money in my BM Savings Cash ISA to an ISA with a different ISA provider?
You'll need to contact the ISA provider to arrange the transfer. Please note transfers may be subject to a loss of interest depending on the term and conditions.
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How do I transfer the money in my BM Savings Cash ISA to another Cash ISA with BM Savings?
We currently only offer this facility for our postal ISAs. If you want to transfer your funds into a postal 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.
Please note transfers may be subject to a loss of interest depending on the term and conditions of your account.
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How do I transfer the money in my Cash ISA with another bank or building society to the internet fixed rate ISA?
Providing the ISA you have allows transfers in from other ISAs you can contact us on 0845 602 2828 and request the transfer.
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Can I open a Cash ISA and subsequently close it and 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.
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How can I transfer previous years ISA subscriptions into my existing BM Savings Cash ISA?
You can request the transfer by completing the ISA transfer form
and return it by post to the address within the form. This can only be used for customers that have an existing Cash ISA account with BM Savings.
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