Cash ISAs - Halifax · 3 ISAs in a nutshell ISA stands for Individual Savings Account, and there are different types. They’re the easy way to get more from your savings

Cash ISAsYour guide to tax-free saving

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You’ll find everything you need to know about ISAs in this guide.

ISAs in a nutshell 3

How your ISA works 4

ISA Promise 5

Which ISA? 6

Key facts about our ISAs 11

Switching your ISA 12 to Halifax

Any questions? 13

Important information 14

Not all of the accounts covered by this booklet are available to new customers at all times. Some ISAs are designed to be opened and managed in a particular way, for example using online banking, and we may offer different rates and terms. We can withdraw accounts and interest rates at any time, however, this won’t affect existing customers.

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ISAs in a nutshellISA stands for Individual Savings Account, and there are different types. They’re the easy way to get more from your savings.

The benefits of saving in an ISAThere are lots of reasons why saving in a cash ISA might be right for you. Here are just a few:

Pay less tax on your savings – All funds in a cash ISA are tax free, so you can top up each tax year and gradually build more and more tax-free savings.

Improved flexibility – with our ISA Saver Variable, Variable ISA Saver and Instant ISA Saver, you can withdraw and deposit in the same tax year without affecting your annual ISA allowance.

Tax-efficient investments – stocks and shares ISAsA stocks and shares ISA isn’t tax free, but it is tax efficient – you don’t pay personal income tax or capital gains tax on any increase in the value of your investment. It’s another option open to you if you’re looking to invest for at least 5 to 10 years. If this sounds like you, come and talk to us in branch or visit halifax.co.uk/investments/our-investment-products

Innovative finance ISAAre designed for people who want potentially higher returns and who accept the risks that come with investing in this market.

Lifetime ISAAre designed to allow you to save up to the lifetime ISA allowance each tax year and receive a government bonus of 25% of what you have saved. You can use some or all of the money to buy your first home, or keep it until you’re 60 – it’s up to you.

Innovative finance ISA’s and lifetime ISAs aren’t sold by Halifax.

H The value of a stocks and shares ISA isn’t guaranteed and you may get back less than you originally invested.

Tax rules may change in the future and taxation will depend on your personal circumstances.

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How your ISA worksSaving in an ISA is very straightforward, but there are a few differences from ordinary savings accounts.

The Financial Conduct Authority is a financial services regulator. It requires us, Halifax plc, 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.

Your annual ISA allowanceFirstly, there’s a limit on how much you can pay in. For each tax year, which runs from 6th April one year to 5th April the next, the government gives you an ISA allowance.

You can choose to invest all or some of your ISA allowance in a cash ISA, a stocks and shares ISA, a lifetime ISA or innovative finance ISA or a combination of all of these as long as you don’t invest more than the annual limit.

The 2018/19 tax year allowance is:£20,000 for an adult ISA (in a Help to Buy:

ISA you can only save an initial deposit of up to £1000 plus up to £200 per month)

£4,260 for a Junior ISA

The Help to Buy: ISA allowance is lower than the overall ISA allowance. You can only pay into one cash ISA in any tax year so your remaining allowance can only be invested in to a stocks and shares ISA, a lifetime ISA or an innovative finance ISA (contributions to Help to Buy: ISA and a stocks and shares ISA must not exceed the overall limit of £20,000).

What if you take money out?Flexible ISAs allow you to withdraw and replace funds from some of our cash ISAs without affecting your yearly ISA allowance, providing you replace funds in the same tax year that you withdraw them. If you withdraw from an ISA that is not flexible any funds you replace within the tax year will count towards your ISA allowance.

For example: • If you deposit £20,000 then withdraw £2,000,

you can replace the £2,000 before the end of the tax year.

Please note, money cannot be taken out of a junior cash ISA until the child turns 18. This is because once the child is 18, it is their money, not the responsible adult.

Additional ISA subscriptionIf 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.

Paying in to a cash ISAHalifax have a range of cash ISAs, so you can choose one that lets you pay in the way you want, including in branch or online, and by cash, cheque, standing order, or transfer from another account.

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ISA PromiseAnother great reason to take out an ISA with Halifax.

Halifax promises:1. When you switch your ISA or Child

Trust Fund to us we will not wait for your current provider, we pay interest from day one of receiving your completed transfer application – as long as your funds are free to transfer.

2. We’ll keep you informed

• While switching your cash ISA or Child Trust Fund to us.

• When your cash ISA is coming to the end of a fixed term.

• Of your interest rate on paper statements, online and mobile.

3. We won’t offer any of our cash ISA products to new customers only.

Our ISA Promise is part of our agreement with you.

More details...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.

No one wants to be kept in the dark. Especially when it concerns your money. With our cash ISA Promise we’ll tell you what’s happening with your account. You’ll know where you stand and how well your savings are growing.

To find out more about our cash ISA Promise and what it means to you, ask one of us in branch or call. We’ll be happy to help.

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Which cash ISA suits you?

Help to Buy: ISA

WhoFor customers who are first time buyers saving for their first home. Aged 16 and over and are resident in the UK for tax purposes.

How muchOpen an account with as little as £1 up to £1,000 within 21 days of account opening.

DepositsSave up to £200 each month by standing order, including the month you open the account, meaning your initial deposit could be £1,200.

WithdrawalsUnlimited. 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.

InterestVariable rate. Tax free. Paid annually.

AccessIn branch, over the phone and online. It can be closed in branch.

Government bonusThe Government will pay a 25% bonus on your final balance (minimum £400, maximum of £3,000).

To receive your bonus:

• close your account in branch in one transaction when you are ready to buy your first UK property (up to the value of £250,000 outside London and £450,000 inside London). Any costs incurred before the completion cannot be covered by the bonus.

• provide your Help to Buy: ISA closing documents to your conveyancer and they will claim the bonus on your behalf.

¦ Use our hassle-free ISA transfer service and switch any existing ISA balances you have to us from elsewhere.

Found the right ISA?For current interest rates and to apply,

ask us today in branch

0345 726 3646

halifax.co.uk/savings

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Any questions about Help to Buy?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 plus £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?You’ll need to close your account in one transaction in branch and provide your Help to Buy: ISA closing documents 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 we will open a new Help To Buy: ISA within 12 months up to your final balance for your savings. 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 property.

Please noteBy 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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ISA Saver Variable

WhoFor customers aged 16 and over and are resident in the UK for tax purposes.

How muchOpen an account with as little as £1.

How long12 months.

DepositsUnlimited up to the current tax year ISA allowance and transfers in from previous years’ cash ISA allowances.

WithdrawalsUnlimited. Any money you take out, can be replaced in the same tax year provided that in total you do not exceed your ISA allowance for that tax year.

InterestVariable rate for 12 months. Tax free. Paid annually.

AccessIn branch, over the phone and online.

What happens at the end of my term?Before your term finishes, we’ll contact you, to let you know what your options are. If you don’t take any action your account will become an Instant ISA Saver.




0345 726 3646


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ISA Saver Fixed

WhoFor customers aged 16 and over and are resident in the UK for tax purposes.

How muchOpen an account with £500 minimum.

How longChoose a term between 1 and 5 years. As not all of the terms are available at all times, please ask for details.

DepositsYou have 60 days to deposit funds up to the current ISA allowance, plus transfers in.

WithdrawalsNo withdrawals. Early closure permitted subject to a charge, which could mean you would get back less than you originally deposited. To see the equivalent amount of tax-free interest you would lose if you close your account early, see page 11.

InterestFixed rate. Tax free. Paid annually or monthly. Can be paid into the account or paid away into another account of your choice.

AccessIn branch, over the phone and online.

Bear in mindIf you open an ISA Saver Fixed this tax year, but don’t pay in your whole cash ISA allowance, you’ll limit the amount you can hold in cash ISAs this tax year. You can only fund one cash ISA per tax year.

What happens at the end of my term?Before your term finishes, we’ll contact you, to let you know what your options are. If you don’t tell us what to do with your money the account will become an Instant ISA Saver.




0345 726 3646


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Simple savings for children

Junior Cash ISA

WhoFor children 17 and under who are resident in the UK. You can transfer savings from another Junior ISA or Child Trust Fund (CTF) provider to a Halifax Junior Cash ISA but the CTF must be transferred when the Junior Cash ISA is opened. If your child is 15 or under, and you have parental responsibility for them, you must open and run the account.

How muchOpen an account with as little as £1.

How longNo minimum or maximum term.

DepositsUnlimited up to the current tax year Junior ISA allowance. Any money paid into a Junior stocks and shares ISA will also count towards the annual limit.

WithdrawalsOther than transfers to another junior ISA, no withdrawals until the child reaches 18.

InterestVariable rate. Tax free. Paid annually.

AccessIn branch.

Junior Cash ISAWhat happens when the child turns 18?The Junior Cash ISA will automatically convert into an adult cash ISA.

Who can deposit funds?Grandparents, friends, anyone. Deposits can be made in any Halifax branch.

Whose name is the account in?The account is in the child’s name even if managed by a parent or guardian. At 16 the child can request to manage it themselves.

' Junior ISA limits are different from adult ISAs. For the current ISA limits please see page 4 or ask in branch.

See page 14 for more important information about our Junior Cash ISA, and please refer to the variable interest rates leaflet.

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Key facts about our cash ISAsSummary of key product information:

Account name Help to Buy: ISA ISA Saver Variable ISA Saver Fixed Junior Cash ISA

Interest rates For current interest rates please refer to our variable or fixed interest rate leaflet available in branch, by telephone or online.

Tax status Interest will be paid tax free.

Conditions for bonus payment

We do not pay a bonus, but see page 6 for details of the Government bonus.

Sometimes we may offer a bonus on this account. To find out more, ask in branch, by telephone or online.

There’s no bonus available on this account.

Withdrawal arrangements

Unlimited number of withdrawals. No withdrawals allowed.*

No withdrawals allowed until the child is 18.**

Access Branch, telephone and online. Closures in branch only.

Branch, by telephone and online.

Manage in branch, by telephone or online. Early closure in branch only.

Balance enquiry in branch.

* Early closure in branch permitted. If you close your account early, you lose an amount based on the term chosen, equivalent to:

• 1 year – 90 days’ tax-free interest

• 18 months – 135 days’ tax-free interest





This amount will be taken from the balance of your ISA Saver Fixed so you may get back less than you deposited.

** Except transfers to another Junior ISA, except in the specific circumstances set out in the Halifax savings account conditions (inc cash ISAs).

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Switching your ISA to HalifaxYou can transfer funds from other ISAs into any of our cash ISAs. Just complete one form for each ISA you’re switching from and we’ll do the rest. It couldn’t be easier.

Five steps to a simple switch

1 Choose your Halifax cash ISA.

2 We’ll open your new account as quickly as possible.

3 We’ll ask who you currently have your ISA with so we can transfer your money over to your new account.

4 With our ISA Promise, we pay interest from the day we receive your completed ISA transfer form – see page 5 for full details.

5We’ll write to you when the transfer’s complete – should be no longer than 15 days from receiving your completed transfer form. For a stock & shares ISA within 30 calendar days.

Please note, if you’re transferring your stocks & shares ISA to a cash ISA with us. The price of the stocks & shares you hold could go up while the transfer is happening, you will lose out on any increase in value. Halifax will not be liable if this happens.

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Any questions?If you’ve still got questions about switching, here are some answers to the most common queries from our customers.

When can I switch my ISA from another provider to Halifax?You can switch your ISA at any time of the tax year. If your current ISA has a notice period or restriction you may lose interest on your ISA by transferring straight away. Please check with your existing ISA provider.

Can I switch more than one ISA?Absolutely. Just complete one form for each ISA you want to switch to Halifax.

If I switch my ISA to Halifax, when will the money show in my account?The money will show as a credit on the day we receive it from your previous provider.

Do I have to move all the money in my cash ISA I hold elsewhere?With adult ISAs, you can transfer any amount as long as you only have one cash ISA, one stocks & shares ISA, one lifetime ISA or one innovative finance ISA that hold current tax year’s subscriptions. With Junior ISAs you can hold one cash ISA and one stocks & shares ISA.

If I’ve started saving in an adult ISA with another provider can I transfer this to Halifax?Yes. For example, if you’ve saved £2,000 in an ISA with another provider, you could transfer your balance(s) to us and save the rest of your ISA allowance for the current tax year with us.

If I have a previous year’s ISA savings with another provider, can I transfer it all and still have this year’s ISA allowance as well?Yes, you can transfer it all to your new Halifax ISA. And as long as you haven’t already topped up an ISA this year, you can add the full amount of this year’s allowance.

I’m new to Halifax – what ID will you need to see?By law we need to check the identity of all our customers. So first we’ll need to:

• Do an electronic ID check with a credit reference agency.

If everything’s okay, that’s all we need to do. Alternatively we may ask to:

• See one document from you that’s been issued by the Government.

This could be a driving licence or your passport. Plus, we may request another document – like a recent bank statement or a utility bill.

To open an ISA account you will need to provide us with your National Insurance number.

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Important informationISA terms and conditionsThis booklet gives you a snapshot of all our current Halifax cash ISAs. Each comes with its own detailed conditions, which you’ll need to agree to before you can open and use the account. We’ll give you these conditions either in branch, or by posting them to you if you open an account over the phone. For online applications, the conditions can be found online. You can also ask for a copy of them at any time.

Tax and interestTax free is the contractual rate of interest payable where interest is exempt from income tax. Tax rules may change. The favourable tax treatment for cash ISAs depends on your personal circumstances and may vary in future.

You can change your mindIf you open an ISA, but then decide it’s not right for you, you’ve 14 days to cancel it without charge starting from the day after you open your account (or if you open your account by phone, from the day you receive your conditions if that’s later). (If you cancel your ISA at this point, you’ll still be able to open another cash ISA in the same tax year.) Send your notice in writing to: Halifax PO Box 548, Leeds LS1 1WU or, if you have a Junior Cash ISA, contact your local branch. We’ll repay any credit balance and interest on the account for the time your money was with us.

If you miss the 14-day deadline, you may still close your account, as explained in the account conditions, but you won’t be able to open another one in the same tax year. You can’t close a Junior Cash ISA after 14 days except in the specific circumstances set out in the account conditions.

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Do you need extra help?

If you’d like this in another format such as large print, Braille or audio CD 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’re Deaf and a BSL user, you can use the SignVideo service available at halifax.co.uk/accessibility/signvideo

Our promiseOur 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 9779 or 0113 366 0167. (Textphone 0800 389 1286 or 0113 366 0141, if you have a hearing impairment.) For more information visit halifax.co.uk/contactus/how-to-complain

If you’re still not happy and we can’t put things right to your satisfaction, you can ask the Financial Ombudsman Service to look at your complaint – provided you have tried to resolve the matter directly with us first. We hope you won’t need to contact the Financial Ombudsman Service but if you do, we’ll tell you how to do this.

Calls may be monitored or recorded. Not all telephone banking services are available 24 hours a day, seven days a week. Please speak to an adviser for more information.

Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.

All the information in this brochure was correct when it was printed (April 2018). Compliance No: 16919.21.

Eligible deposits with us are protected by the Financial Services Compensation Scheme. We are covered by the Financial Ombudsman Service.

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It’s easy to get in touch

Come in and see us

0345 726 3646

halifax.co.uk

1/3360247-6 (04/18)

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Documents

Cash ISAs - Halifax · 3 ISAs in a nutshell ISA stands for Individual Savings Account, and there are different types. They’re the easy way to get more from your savings