Cash ISAs are growing in popularity but if you’re confused as to what they’re all about and whether they are the right savings choice for you, read on and we’ll explain more.
What is a Cash ISA?
A Cash ISA is a savings account that you deposit money into and you earn interest on it. The main benefit is that the interest you earn is tax free – the tax man doesn’t get a penny.
How does a Cash ISA work?
You can deposit any amount up to £5,100 into one Cash ISA over a single tax year (which starts on 6 April every year) and all the interest you earn will be tax free. You can deposit the full amount as soon as you open your Cash ISA, earning you more interest straight away, or you can make regular deposits throughout the year, whichever is easiest. Please remember that Cash ISAs have a subscription limit each tax year. This means that you cannot deposit more than your maximum allowance in a tax year even if you make a withdrawal.
Why choose an ING Direct Cash ISA?
We currently have a great rate on our Cash ISA which is guaranteed for 12 months from when you open the account. If you have cash ISAs from previous years you can transfer them into Cash ISA accounts with ING Direct. Not only could you be earning more, but all your cash ISAs will be in one convenient place. You should find the whole process simple and straightforward and it can only take you a few minutes to arrange.
To open a Cash ISA with us or to transfer previous years’ Cash ISAs, visit ingdirect.co.uk or call us on 0800 561 8857
With an ISA, provided you remain eligible, the interest will be exempt from tax. The value of tax treatment described will depend on individual circumstances. Tax rules could change. You can only hold one active cash ISA per tax year. Interest is calculated daily and paid monthly. From 6 April 2010 you can save from £1 to £5100 each tax year (subject to subscription limits). If you deposit more than £5100 we reserve the right to send the whole amount back to you. We may monitor or record calls. Calls to 0800 numbers from UK landlines are free. The cost of calls from mobile phones may vary. Must be UK resident, 18+. No penalties for withdrawals which may take up to 3 business days to complete. ING Direct is covered by the Dutch Deposit Guarantee Scheme.
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