YBS Savings Cash ISAs and Stocks and Shares ISAs explained.

ISAs explained

An ISA is a special type of account within which every eligible adult can save and invest up to £7,200 tax-efficiently each tax year starting from 6 April 2008.

The information in this section is based on current legislation.

Investment limits

Type of ISA	Investment limits (from 6 April 2008)	Minimum opening age
Cash	Up to £3,600 with one provider	16
Stocks and Shares	Up to £7,200 with the same or another provider	18

Investment examples

	Example 1	Example 2
Start of tax year (from 6 April)	You save £1,200 in a Cash ISA.	You save £1,200 in a Cash ISA.
During the same tax year	You invest £6,000 in a Stocks and Shares ISA.	You invest another £2,400 in the same Cash ISA plus you invest £3,600 in a Stocks and Shares ISA with another provider.
Total invested	£7,200	£7,200

Example 3

Example 4

Start of tax year (from 6 April)

You set up a £500 monthly direct debit into a Stocks and Shares ISA.

Total invested: £6,000 over the tax year

You save £4,450 in a Stocks and Shares ISA.

During the same tax year

You save £1,200 into a Cash ISA with another provider.

In May you set up a £250 monthly direct debit into the same account (11 months x £250).

Total invested: £2,750 over the tax year.

Total invested

£7,200

You will benefit from tax-free interest if you choose a Cash ISA. Although Stocks and Shares ISAs are tax-efficient, they are not completely tax-free.

Eligibility for ISA accounts

To qualify for one of our Cash ISAs, you must be 16 or over and both resident and ordinarily resident in the UK, or be a qualifying Crown employee or married to a qualified Crown employee.

Your right to cancel ISA accounts

If you open an ISA and then change your mind within 14 days, you may cancel your subscription and we will give you your money back with any interest it has earned. We will not apply any notice period or charge. You can then open another ISA in the same tax year if you wish.

Should you wish to cancel your subscription within this period, please write to the branch or agency where you opened your account or call 0845 1200 300.