|
|
ISAs (Individual Savings Accounts) were brought in by the Government in April 1999 as a tax-efficient way of saving - you don't have to declare any income or capital gains made on your savings to the taxman. You can now save up to £7,200 each financial year (which runs from 6 April until 5 April the following year).
There are two different types of ISAs - cash ISAs and stocks and shares ISAs. The Egg Cash ISA 2 is a cash ISA.
You can have one cash ISA and one stock and shares ISA in each tax year.
From 6 October 2009, HMRC (HM Revenue & Customs) has increased the cash ISA subscription limit from £3,600 to £5,100 for people aged 50 or over, or people due to turn 50 before 5 April 2010. This increase in the subscription limit on 6 October 2009 is not mandatory. From 6 April 2010, HMRC will increase the cash ISA subscription limit to £5,100 for everyone over the age of 18.
Currently an Egg Cash ISA 2 can be made up of up to £3,600 in cash only.
A stocks and shares ISA is where your money is invested in stocks and shares, either directly or through things such as unit trusts, OEICs or investment trusts. You can invest up to £7,200 per tax year into a stocks and shares ISA.
You can have a combination of both a cash and a stocks and shares ISA, as long as you remain within your overall total allowance of £7,200 and your maximum subscription to a cash ISA of £3,600. You can also transfer the cash part of your ISA to a stocks and shares ISA at any point in the tax year, up to the overall ISA limit of £7,200.
Once you've subscribed (paid in) your maximum allowance in an ISA you can't subscribe (pay in) any more, even if you take some out.
So if you open a cash ISA and put £2,000 into it, the amount you can deposit for the rest of that tax year is £1,600. Even if you withdraw £500 from the ISA halfway through the year, the maximum amount remaining for you to deposit is still £1,600, not £2,100.
You can open an ISA if you:
- Are aged 16 or over. To open a stocks and shares ISA you must be aged 18 or over.
- Are a UK resident for tax purposes.
- Are opening the ISA in your own name. You can't open an ISA on someone else's behalf.
With the Egg Cash ISA 2 you can:
- Earn 2.50% gross pa/AER (variable) tax free.
- Invest anything from £1 to £3,600 per tax year.
- Apply online. Then you can track and manage your ISA online, any time.
- Make a one-off deposit, regular payments or just add to it when you want to (existing ISAs cannot be transfered in).
Further information can be found in the
Summary Box.
Unless we tell you otherwise when you open an account, you can cancel your account if you notify us in writing within 15 days of the date you sent us your online application or the date your account is opened (whichever date is the later). You can write to us at Egg Banking Plc, Riverside Road, Pride Park, Derby DE99 3GG or send us a secure message from our website if you want to cancel your account.
If you think we've made an error on your account or we've not delivered the standard of service that you expect, please let us know promptly so we can investigate the circumstances as soon as possible.
If we're unable to resolve any complaint through our internal complaints procedure, you may take your complaint to the Financial Ombudsman Service. To contact the Financial Ombudsman or get details of the Financial Ombudsman Service, you should write to The Financial Ombudsman Service at:
South Quay Plaza
183 Marsh Wall
London E14 9SR
Telephone: 0845 080 1800
Email: complaint.info@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk
| | Apply for Egg Cash ISA2 |
 |
| |
|
|
|
Egg Home > Bank > Savings > Cash ISA > Key features > 
