ISA allowance and information
Transferring your ISA - points to consider
How to transfer your existing cash ISA to a smile Cash ISA
What if I open a cash ISA, then change my mind?
Summary
Learn more about how ISA allowances work and how to transfer your existing cash ISA.
What is an ISA?
ISA is short for 'Individual Savings Account'. ISAs are tax-free savings and investments, which means all returns from your ISA will be free of both UK Income and Capital Gains Tax. This favourable tax treatment depends on the individual's circumstances and may be subject to change in the future.
- To save in an ISA, you must be aged 18 or over and be a resident in the UK for tax purposes.
- Accounts can only be opened in a sole name, they cannot be opened as a joint account.
There are different types of ISA - cash ISAs which we offer, stocks and shares ISAs, innovative finance ISAs and Lifetime ISAs which we don't.
Cash ISAs
Allow you to save money in a deposit based savings account.
Stocks and shares ISAs
Allow you to put money into a stock market-based investment, such as unit trusts, for the potential of greater returns. However, the value of investments in stocks and shares ISAs and the income from them may fall as well as rise and is not guaranteed, you may lose part or all of your investment.
Innovative finance ISAs
Lenders can benefit from tax-free interest courtesy of the new innovative finance ISA (IFISA), which will cover loans arranged through peer-to-peer (P2P) platform.
Lifetime ISA
The lifetime ISA is available to people under the age of 40. Contributions of up to £4,000 can be made in each tax-year (a tax year runs from 6 April to 5 April the following year) and the government will then provide a 25% bonus on these contributions at the end of the tax-year. The funds can be withdrawn from the age of 60, or before that for the purpose of purchasing a first home.
ISA Allowance
The current annual ISA allowance is £20,000 per tax year. This is the maximum you’re allowed to pay into a cash ISA, stocks and shares ISA, innovative finance ISA or a lifetime ISA or a combination of the four.
- The annual ISA allowance is set by the government and could change in the future.
- You cannot pay into a cash ISA with us if you have already paid in the full annual ISA allowance in this tax year.
- Where you do not use your full ISA allowance within a tax year, it cannot be carried forward into the next tax year.
Please note once you have paid in your full allowance for the tax-year, you can’t make any further payments until the next tax-year, regardless of any withdrawals you might make.
Transferring your ISA - points to consider
Remember, you cannot pay into a cash ISA with us if you have already paid in the full annual ISA allowance in this tax year.
If you already have a cash ISA with another bank or building society, you can transfer it to us. You will need to complete a Cash ISA Transfer Authority form to do this, which will be sent with your welcome letter after you have applied.
For further details about how to transfer your ISA please see the transferring your existing cash ISA sections below.
Or if you want more information about how you can make the most of your tax-efficient savings you can contact us or visit your local branch.
Transferring in
You can make a transfer into one of our cash ISAs:
If you are transferring into a Fixed Rate Cash ISA, please check with us that the product is still open for deposits, you can do this by calling us or visiting any branch.
Your cash ISA with your existing provider may have restrictions relating to ISA transfers out and you may wish to check this before requesting a transfer to us.
You will not lose the tax benefits provided you first open a cash ISA with us. We’ll provide you with forms to send to your existing provider to request the transfer or we can send them on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.
Transferring out
You can make a transfer out of a smile Cash ISA, either for part of the balance or the full balance:
Some of our ISAs have restrictions which may mean you incur a charge or loss of interest. The individual factsheets/pages will explain withdrawal arrangements within the summary box.
You will not lose the tax benefits provided you first open an ISA with another provider. Your new provider should then be asked to contact us to arrange the transfer. You must not withdraw the funds yourself to transfer as they will lose their tax-free status.
How to transfer your existing cash ISA to a smile Cash ISA
Transferring in to a new ISA
We can only complete an ISA transfer in from an existing ISA, either held with us or another provider, once your smile Cash ISA/Co-operative Bank Fixed Rate Cash ISA is open. So if you haven’t already got a smile Cash ISA/Co-operative Bank Fixed Rate Cash ISA you’ll first need to apply for one before you request an ISA transfer in.
Once your account is open we’ll send you a Cash ISA Transfer Authority form with your welcome letter which you’ll need to complete and return to the address on the form. We’ll then get in touch with your existing ISA provider and complete the transfer on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.
Click here to view our range of ISAs
Transferring in to an existing ISA
If you already hold a smile Cash ISA/Co-operative Bank Fixed Rate Cash ISA, and you want to transfer in the funds from your existing ISA, either held with us or another provider, you’ll need to complete a Cash ISA Transfer Authority form. This will need to be printed and returned to the address on the form. If you’re unable to print this, a copy would have been sent with your welcome letter or you can obtain a copy from any branch or by contacting us.
Once you return the form we’ll then get in touch with your existing ISA provider and complete the transfer on your behalf. You must not withdraw the funds yourself to transfer to us as they will lose their tax-free status.
Note: If you’re transferring in to a Fixed Rate Cash ISA this will need to be completed within 30 days from account opening. Please refer to your welcome letter or contact us if you’re unsure of when your 30 days started.
Transferring more than one ISA?
If you'd like to transfer more than one ISA into a smile Cash ISA/Co-operative Bank Fixed Rate Cash ISA, you'll need to download an additional Cash ISA Transfer Authority form for each additional ISA you want to transfer.
For example:
If you wanted to transfer funds from two existing ISAs (held with other providers) into a smile Cash ISA, you'll need to download the Cash ISA Transfer Authority form and complete 2 forms – one for each existing cash ISA you want to transfer and return these to the address above.
Important Information - a reminder
- The Cash ISA Transfer Authority form is to be sent to us.
- Should you choose to take these forms to your local branch, you'll need your account or roll number for your existing ISA. We'd suggest that you bring along either a recent statement or passbook for the ISA you wish to transfer to us.
- Once your account is transferred we'll write to you to confirm.
Find out more about ISA transfers
For more information about transferring your ISA and the timescales ISA providers work to, visit the Government's website.
What if I open a cash ISA, then change my mind?
You have a right to cancel your account, without giving any reason, for 14 calendar days from the date your account is opened or later depending on the terms and conditions.
It’s important that you notify us if you change your mind, and don’t simply close your account. If you close your account without notifying us that you have changed your mind, any money that you withdraw from your ISA will lose its tax-free status, and, if repaid back into an ISA, it will count towards your current tax year's ISA allowance.
When you cancel your account, we'll help you switch to another of our accounts, transfer your ISA to another provider or give you your money back, as you wish.
You can cancel by writing to us at The Co-operative Bank, ISA Team, Newton House, Leek, Staffordshire, ST13 5RL or at any of our branches.
Remember, you cannot pay into a cash ISA with us if you have already paid in the full annual ISA allowance in this tax year.
Savings terms explained
AER stands for Annual Equivalent Rate and shows what the interest rate would be if it were paid and added to your account each year.
Fixed interest means the rate stays the same until the account matures.
Gross is the rate of interest payable before any tax is taken off.
Tax-free means you will not pay any tax on your interest.
Tax year runs from 6 April to 5 April.
Variable interest means that it could go up or down.
Business day is usually Monday to Friday excluding bank holidays.
Any reference to tax is based on our understanding of current tax regulations which may change in the future and depend on the customer's individual financial circumstances.
The Co-operative Bank reserves the right to decline to accept any application and/or deposit.
Protecting your money
Your eligible deposits with The Co-operative Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with The Co-operative Bank and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Please read further information on the FSCS scheme here or visit their website