With an Individual Savings Account (ISA), all the interest you earn is tax-free. Find out more about how much you can save in a cash ISA and make the most of your tax-free savings allowance.
An Individual Savings Account (ISA)
A tax-free savings account where you don’t pay tax on the interest earned from your savings.
An ISA can be opened by UK residents and Crown Servants (including their spouse and civil partner) aged 16 or over. A junior ISA is for anyone aged under 18 years.
The interest earned isn't taxed
And you can add up to the annual ISA allowance each tax year.
For the 2019/2020 tax year it’s £20,000 and £4,368 for junior ISAs.
They are separate from your Personal Savings Allowance
So if you’re a basic rate tax payer, you can earn up to your £1,000 interest in savings accounts without paying tax whilst you are earning tax-free interest from your ISA.
Find out more about your Personal Savings Allowance
We only offer Cash ISAs at Coventry Building Society
But there are 4 types of ISAs to save in-
Stocks and shares ISA
Innovative Finance ISAs
If your ISA is flexible
You can take money out, choose to pay it back in during the same tax year without affecting your current years' ISA allowance.
If you don’t pay it back until the next tax year, it’ll count towards the new tax year allowance.
Your ISA will become ‘inactive’ if you don’t pay into it in a full tax year
This just means that you didn't pay into your Coventry ISA in the tax year, or you only paid back what you had already taken out if your ISA was flexible. Don't worry - you're still earning interest on your savings but you won't be able to put any new money into it until you reactivate it. Just call our Customer Service Centre or visit any branch to see if your ISA can be reactivated.
Other types of ISAs
As well as a Junior ISA , we also offer an Additional Allowance ISA . This ISA is for customers who have lost a spouse or civil partner and they had ISA savings with us.
Saving after a partner dies
It’s not something we like to think about but if someone holding an ISA dies, their spouse or civil partner is given an extra ISA savings allowance. That doesn’t mean that they get any money, but it does mean that they can save extra (their maximum that year will be their ISA limit PLUS the total amount their spouse or civil partner had in ISA savings). This is the case whether their partner leaves the money to them or not.
It's easy to keep track of your ISA savings
You must make sure you don't pay in more than your annual ISA allowance. If you accidentally make a payment which takes your balance over the annual ISA allowance, we automatically return the whole payment.
Some useful links...
If you can't find what you need on our website, contact us.
You might also find these websites helpful:
The Government's website has clear and comprehensive information about ISAs, the rules and allowances (type 'ISA' in the search box):
MoneySavingExpert has a full guide to ISAs (type 'isa' in the search box):
Which? magazine gives advice and has handy comparison tools: