Savings

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M58974

Lloyds Bank

LB Cash ISA Guide

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Some things are worth planning for.Our cash ISAs can help give your money a tax free home, ready for when you take the next step in life.

Cash ISA

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Contents

ISAs at a glance 1Saving tax-free 2ISA allowance 3Help to Buy: ISA 5Cash ISA Saver 8Fixed Rate Cash ISA 9Junior Cash ISA 11Opening your ISA 13Managing your ISA 14

Cash ISAs

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I’d love my savings to grow faster

Our range of cash ISAs at a glance

Saving tax-free means you keep more interest, so your money could grow faster.

You don’t have to tie up your money if you don’t want to – you can choose between a Cash ISA Saver, Fixed Rate Cash ISA or a Help to Buy: ISA for first-time buyers.

If you already have an ISA with another provider, you can move it to us and we’ll pay interest from the day we receive your completed transfer form, as long as your ISA is ready to move to us.

This guide explains all you need to know about the different types of cash ISAs available, their allowances, and how to manage them.

The Financial Conduct Authority is a financial services regulator. It requires us, Lloyds Bank, to give you this important information to help you to decide whether our cash ISA is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

Tax treatment depends on your individual circumstances and may change.

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ISAs at a glance

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I want to start saving tax-free

Open a Lloyds Bank Cash ISA for a smarter way to save

What is an ISA, and is it right for me?The government introduced Individual Savings Accounts (ISAs) to encourage more people to save. The idea is to give savers special tax treatment to help their money grow faster.

There are different types of ISAs: cash ISAs (fixed and variable), stocks and shares, innovative finance, and lifetime ISAs.

Cash ISAs are ideal if you want a simple account that lets you save tax-free. Stocks and shares and innovative finance ISAs are designed for people who want potentially higher returns and who accept the risks that come with investing in the stock market.

Lifetime ISAs are to help you save up to the lifetime ISA allowance each tax year, and receive a government bonus of 25% of what you have saved. You can then use some or all of the money to buy your first home, or keep it until you’re 60 – it’s up to you. Lloyds Bank don’t offer innovative finance or lifetime ISAs.

The value of stocks and shares ISAs can go down as well as up and you may get back less than originally invested.

The big advantage of a cash ISA is that the money you save in it can grow without incurring a tax bill. So the advantage here is that you don’t have to pay income tax on interest earned.

Helping you make the most of your tax-free savingsIf you move an existing ISA from another provider we’ll pay your interest from the day we receive your completed transfer application – as long as your ISA is ready to move to us. Go to page 14 for more about moving ISAs to Lloyds Bank.We’ll also let you know when the fixed term on your cash ISA is coming to an end.

Saving has become more flexible than everWith our cash ISA products you will have the flexibility to take money out of your ISA and put it back in later in the same tax year without losing any of your ISA entitlement. So as long as it’s in the same tax year, if you save the full ISA allowance of £20,000 and then take out £1,000, you can put the £1,000 back into your ISA without losing any of your annual ISA allowance. Fixed rate ISAs don't always have the same flexibility as variable ISAs, so bear this in mind.

Saving tax-free

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I need to know what my ISA allowance is

Save up to £20,000

A tax year is the 12 months from 6 April in one year to 5 April the next – the government gives you an ISA allowance for each tax year.

This allowance is the amount you can pay in during the tax year, not the maximum balance you can have in your cash ISA.

Staying within your ISA allowanceRemember, you can’t pay in more than the ISA limit in a tax year. With some of our ISA accounts you can now replace any money you have withdrawn in the same tax year, without losing any of your ISA entitlement.

The amount you can save in a Help to Buy: ISA is less than what you can save in a standard cash ISA. The maximum you can save is a £1,000 initial deposit plus £200 per month. If you have a Help to Buy: ISA your remaining ISA allowance can only be invested in a stocks and shares, innovative finance or lifetime ISA. (Contributions to any combination of permitted ISAs must not exceed the overall limit of £20,000.) You can only use the bonus from one of the ISA’s towards the purchase of your first home.

Staying within the Junior ISA allowanceA child cannot save more than the £4,260 allowance less any amount invested in a Junior Stocks and Shares ISA in the same tax year.

What happens if I don’t use all my ISA allowance?The rules say that you lose any of your ISA allowance which you haven’t used by the end of the tax year on 5 April. This means it’s a good idea to use as much of your allowance as you can before then.

Can I ever pay in more than the ISA allowance?If your spouse/civil partner dies (on or after 3 December 2014), you may be eligible to invest an amount based on the value of their ISA holdings. You can pay in this additional permitted subscription allowance into an existing ISA you have with us already, or open a new one. You cannot pay an additional permitted subscription into a Help to Buy: ISA with us.

ISA allowance

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ISA allowance

£20,000In a Help to Buy: ISA you can deposit £1,000 within 21 days

of account opening only, plus up to £200 per month.

Junior ISA allowance

£4,260

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2018/2019 ISA allowance

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I need an account that helps me save for my first home

This is a dedicated account for first-time buyers, to help you save towards your first home.

• Open with a minimum £1 and up to £1,000 within 21 days of account opening.

• Save up to £200 per month by standing order (to reach your account by 25th of the month) including the month you open the account. This means you could save a maximum of £1,200 in the first month.

• The government will pay a 25% bonus on your final balance (min £400, max £3,000). To receive the minimum bonus you'll need to save £1,600.

Government bonusThe bonus will be calculated and paid when you buy your first home. Maximum purchase price is £250,000 (£450,000 in London). Subject to the government eligibility rules.The bonus will be paid directly to your conveyancer who will claim it on your behalf.

Help to Buy: ISA: The details

Interest rates (AERs)Variable rate. Interest paid annually into your ISA. If this falls on a non-working day, interest will be paid on the next working day.

Withdrawal arrangementsNo notice period. Remember, you can’t claim the government bonus on any money you withdraw, therefore if you make withdrawals it may take you longer to save towards your first home as you can only pay in a maximum of £200 a month.

Tax statusInterest will be paid tax-free. Tax treatment depends on your individual circumstances and may change.

Conditions for bonus paymentLloyds Bank don’t pay a bonus but there is a government bonus applicable.

AccessBranch, phone and online. Closure in branch only.

To apply visit a branch, call 0345 300 0000 or visit lloydsbank.com/savings

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Help to Buy: ISA

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Any questions about Help to Buy: ISA?

I’m saving to buy a house with my partner, can we have a joint Help to Buy: ISA? ISAs cannot be opened jointly, but if your partner also meets the eligibility criteria, they can also open a Help to Buy: ISA and both bonuses can be used together.

What’s the maximum I can save?An initial deposit of £1,000 and £200 per month. However, the 25% bonus has a cap of £3,000 which would be reached when you have saved £12,000 including interest earned.

Can I get the money paid directly to me?The scheme is administered by UKAR Corporate Services Limited (UKAR). Your conveyancer must apply to UKAR for the bonus on your behalf and will receive the bonus payment.

How do I claim the 25% bonus when I come to buy my home?

When you are ready to buy your first home, you will need to close your account in branch and we will provide you with your closing documents. These need to be given to your conveyancer at the time of purchasing your home and they will claim the bonus on your behalf.

Can I use any conveyancer?No, only conveyancers registered with the scheme can be used. So, you will need to ask this when appointing a conveyancer.

Can I use the bonus for a buy-to-let property or a home abroad?No, the scheme is designed for first-time buyers to live in their homes here in the UK.

What happens if my house sale falls through?If your purchase falls through within 12 months of account closure, we will open a new Help to Buy: ISA up to the value of your closing balance. Any bonus paid to your conveyancer will be returned to the scheme administrator. You can make another bonus claim when you are ready to buy your next property.

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Help to Buy: ISA

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Please note by holding a Help to Buy: ISA with us you agree that we can share relevant information about you and your Help to Buy: ISA savings to, amongst others, the Help to Buy: ISA scheme administrator, which is responsible for processing any claim you make. You can find more detail on how your information is used below:

a) HM Treasury (https://www.gov.uk/ government/organisations/hm-treasury) is the Data Controller for the Help to Buy: ISA Scheme;

b) Information relating to each Eligible Customer will be shared with HM Treasury, UKAR (as Administrator of the Scheme) and UKAR contractors and Third Parties. The purposes of doing this are to enable

HM Treasury and the Administrator / UKAR and the UKAR contractors to:

• administer the Help to Buy: ISA Scheme including confirming eligibility for the Scheme and paying bonuses;

• carry out data reporting, compliance, investigations, audit and fraud prevention work necessary to run the Scheme; and

• compile management and statistical information about the performance of the Scheme.

c) HM Treasury and/or the Administrator, or one or more contractors will use the information for the purposes above.

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Help to Buy: ISA

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I need an instant access ISA

Cash ISA Saver

This account lets you take money out whenever you want and you can:

• Open with as little as £1.

• Pay money in as often as you like (up to the ISA allowance).

• Save regularly by setting up a standing order.

• Transfer in ISAs from other providers.

Cash ISA Saver: The details

Interest rates (AERs)Variable interest rate for 12 months from account opening. Interest paid yearly on 31 March and anniversary of account opening. If this falls on a non-working day, interest will be paid on the next working day. After 12 months your account automatically changes to an Instant Cash ISA.

Tax statusTax free. Tax treatment depends on your individual circumstances and may change.

Conditions for bonus paymentNot applicable.

Withdrawal arrangementsInstant access with no loss of interest. If you make a withdrawal, you can pay that money back in before the end of the tax year without affecting your tax-free entitlement.

AccessBranch, phone and online.

To apply visit a branch, call 0345 300 0000 or visit lloydsbank.com/savings

Cash ISA Saver

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I would like to know how much my ISA will grow

Fixed Rate Cash ISA

If you’re happy to leave your money to grow for one to five years*, this account can give you a fixed rate of tax-free interest. This rate can vary depending on the amount saved. You can make withdrawals, but there’s a charge on the amount withdrawn (depending on the term of your account). This will be deducted from the balance of your account at the time of withdrawal, so you could get back less than you deposit.

• Minimum opening balance of £3,000 and interest is paid from £1.

• Interest is fixed when you open the account, so you know how much interest you'll earn from the start.

• You can continue to make deposits throughout the term, up to your cash ISA allowance.

• At the end of the term, your account automatically changes to an Instant Cash ISA.

* Terms range from one to five years but are subject to availability.

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Fixed Rate Cash ISA

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Fixed Rate Cash ISA: The details

Interest rates (AERs)Fixed interest rate. Interest is calculated daily and paid into your ISA or nominated account either monthly or annually on the day that the account was opened until the end of the term. Monthly interest may be at a different rate. After the fixed-rate period, your account automatically changes to an Instant Cash ISA account.

Tax statusTax free. Tax treatment depends on your individual circumstances and may change.

Conditions for bonus paymentNot applicable.

To apply visit branch, call 0345 300 0000 or visit lloydsbank.com/savings

Withdrawal arrangementsNo notice period. We don’t encourage withdrawals on this account, although they are possible. Any withdrawal within the fixed period will mean a charge depending on the term of your account. If you take money out, it can be replaced in the same tax year without affecting your annual ISA entitlement.

AccessBranch, phone and online.

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Fixed Rate Cash ISA

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I’d like an ISA that’s great for my children

Junior Cash ISA

This is a long-term tax-free savings account for children. It’s a simple way to build savings that will come of age with your child.

• Available for children 17 and under. If your child is 15 or under, the account must be opened and managed by a parent or guardian.

• Variable tax-free interest.

• Anyone can deposit up to the annual junior ISA allowance in the current tax year less any amount invested in a Junior Stocks and Shares ISA in the same tax year.

• It is possible to transfer savings from another Junior ISA or Child Trust Fund provider to a Lloyds Bank Junior Cash ISA.

• All funds belong to the child and cannot be returned to the donor.

Junior Cash ISA: The details

Interest rates (AERs)Variable interest rates. Interest paid annually on 31 March.

Tax statusTax-free interest. Tax treatment depends on the child’s individual circumstances and may change.

Conditions for bonus paymentNot applicable.

Withdrawal arrangementsNo withdrawals until the child turns 18 or the child becomes terminally ill or dies. (In the event of a terminal illness, the parent or guardian must obtain permission from HMRC to withdraw funds from the account.)

AccessThe account can only be opened and managed in branch. We will write to the child before they turn 18 and the account matures, to explain what they need to do to access their savings.

To apply visit lloydsbank.com/savings or visit branch.

Junior Cash ISA

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£

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I want to open an ISA

In branch, online or on the phone

Cash ISA• Apply at your local branch.

• Call us on 0345 300 0000

• Or log on to Internet Banking and apply online for our Cash ISA Saver, Help to Buy: ISA or a Fixed Rate ISA.

Please note you’ll need to have your National Insurance number with you. You must be 16 or over and resident in the UK for tax purposes.

Once everything’s set up you’ll receive your account number and we can arrange to move any other ISAs over to your new account.

When you apply to open your Help to Buy: ISA you agree that we can disclose relevant information about you and your Help to Buy: ISA savings to the scheme administrator and HM Treasury so they can process your

data in connection with the Help to Buy: ISA scheme, including processing any bonus claim you make.

Junior Cash ISA• Visit your local Lloyds Bank branch.

• Or log on to Internet Banking and apply online.

If the child is 15 and under, a parent or guardian must open the account. If the child is 16 or over they must open the account themselves. The child must be resident in the UK when the account is opened.

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Opening your ISA

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I want all my ISAs in one place

Move your other ISAs to Lloyds Bank

If you have an ISA with other providers, you can move them to your Lloyds Bank cash ISA so you get the same interest rate on all the money.

• You can move money from previous tax years, and it won’t affect your ISA allowance for the current tax year.

• If you want to transfer funds from an existing non Help to Buy: ISA to a Help to Buy: ISA, you can only transfer up to £1,000.

• When transferring a Help to Buy: ISA from another provider, you have to transfer the full balance as you can only have one Help to Buy: ISA.

• Depending on the type of ISA account you have, there may be a charge if you want to transfer your funds before the end of a fixed term or a charge for withdrawing your balance. Please check this with your existing provider.

If you move an existing ISA from another provider, we’ll pay interest from the day we receive your completed transfer application – as long as your ISA is ready to move to us. If your transfer is delayed because your existing ISA has a notice period or restriction, your current provider will let us know when it will be free to move to us, and we’ll pay interest from that date.

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Managing your ISA

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I’ve changed my mind

What happens if you close your account?

Within the cancellation periodIf you open a cash ISA or Junior Cash ISA with us but then change your mind, you can cancel it during the cancellation period, which is within 14 days of opening your account. If you cancel during the cancellation period, you’ll still be able to open another cash ISA or Junior Cash ISA with us (or another provider) in the same tax year.

You can cancel your ISA with us and open another one if you tell us within

14 days

After the cancellation periodIf you choose to close your account after the 14 day cancellation period, we’ll help you move your money to another of our accounts or return your balance including any interest due to you.

A Junior Cash ISA account can only be closed if the balance is transferred to another Junior Cash ISA or Junior Stocks and Shares ISA.

If you close one of our Fixed Rate Cash ISAs, you will be charged depending on the term of the product, so you could get back less than you originally deposited. Please check your terms and conditions or ask a member of staff.

If you’ve paid money into your account and you close it after the 14 day cancellation period, you won’t be able to take out another cash ISA (with us or any other provider) in the same tax year. You can transfer your cash ISA to another provider.

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Managing your ISA

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Important information

Payments at the end of the tax yearIf the end of the tax year falls on a weekend or a Bank Holiday, any payments you make will still be allocated to the old tax year’s allowance – as long as the money is credited to your cash ISA before midnight on 5 April. All that happens is the entry on your statement will have the date of the first working day of the new tax year.You can credit your ISA right up until midnight on 5 April.

Our promise:Our promise is to do our best to resolve any problems you have. If you wish to complain visit your local branch or call 0800 072 3572 or 01733 462 267 (Textphone 0800 056 7614 or 01733 347 500 if you have a hearing impairment). For more information visit www.lloydsbank.com/contactus

Your call may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

Not all Telephone Banking services are available 24 hours a day, seven days a week. Please speak to an adviser for more information.

Eligible deposits with us are protected by the Financial Services Compensation Scheme. We are covered by the Financial Ombudsman Service.Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065.

Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

Information correct as at April 2018.

Compliance No. 19030.10

Help to Buy: ISAIf you take part in the government’s Help to Buy: ISA scheme, this will not mean you automatically:

• qualify for any other financial product, either from us or from any other bank or building society; or

• qualify for, or are eligible to participate in, any other help to buy scheme or programme offered by the government.

At the start of the government’s Help to Buy: ISA  scheme, the scheme administrator will be the UKAR.

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Open a cash ISA

£Go to lloydsbank.com/savings

ÕCall us on 0345 300 0000

uVisit your local branch

If you’d like this in another format such as large print, Braille or audio please ask in branch.

If you have a hearing or speech impairment you can contact us using the Next Generation Text (NGT) Service

(available 24 hours a day, 7 days a week).

If you are Deaf and prefer to use BSL then you can use the SignVideo service available at: lloydsbank.com/signvideo.asp

M58974 (04/18)

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