ISAs

ISAs are a great opportunity to earn tax-free interest on your savings, but of course, everyone’s priorities are different. Find out more about the different types of Cash ISA before making your decision.

Whichever ISA you choose, you’ll be entitled to a total ISA allowance of £20,000 for the 2020/21 tax year. You can only save into one Cash ISA per year. However, you can split your yearly allowance across different types of ISA including those not offered by YBS (e.g. Stocks & Shares ISAs), and you can start saving from as little as £1.

To get a Cash ISA with YBS, you’ll need to meet the eligibility criteria. For example:

• You’ll need to be aged 16 or over.
• You must be a UK resident for tax purposes. Crown employees, or those married or in a civil partnership with a Crown employee, may also qualify.
• Your Cash ISA must be held in your name only.

You can transfer your existing ISA savings from previous years into your Fixed or Variable Rate ISA, though you can only subscribe to one Cash ISA in a single year. For more on ISA allowances see our ISAs Explained guide.

Once you’re ready, you can apply online through the YBS website, in a branch, or by calling 0345 1200 200 to request an application pack. You will need a minimum of £1 to open an account. After your cash ISA is set up, you can manage the account online, giving you a simple way to make transactions and check your balance and interest rate.

A Cash ISA (Individual Savings Account) is a type of savings account that lets you earn tax-free interest on the money you save.

The total annual ISA allowance is £20,000 for the 2020/21 tax year. Money you deposit into an ISA will be counted as part of your yearly allowance, unless you are replacing money you have previously withdrawn from a flexible ISA in the same tax year. If unused, your allowance limit doesn’t carry over to the next tax year and is lost. If you already have money deposited into an ISA in a previous tax year and want to move it to a new ISA, that doesn’t count towards your allowance for the current tax year.

While your money is in a YBS Cash ISA it is secure. Eligible deposits in YBS Cash ISAs are guaranteed under the Financial Services Compensation Scheme up to a total of £85,000 for an individual or £170,000 for a joint account.

No, you can’t save into two Cash ISAs in a tax year – but you can save into one Cash ISA and other types of ISAs not provided by YBS e.g. Stocks & Shares. You can also transfer your money between ISA accounts — including those not offered by YBS, such as Stocks & Shares ISAs — subject to the product terms and conditions.

The introduction of the Personal Savings Allowance means ISAs aren’t the only way to earn interest tax-free but ISAs are still an attractive option for savers. The interest on your savings won’t count towards your Personal Savings Allowance, and of course, you can save up to £20,000 in annual tax-free savings.