Individual Savings Accounts

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What is an ISA?
The Individual Savings Account, or ISA for short, is a tax efficient savings account.
There are 2 types of ISA:
■ Cash ISA
■ Stocks and Shares ISA

Cash ISA - The Loughborough does offer a Cash ISA account
Stocks & Shares ISA - The Loughborough does not offer a Stocks & Shares ISA

Subscription Limits
In April, the Government announced that the annual subscription limits for Individual Savings Accounts will be raised from £7,200 (of which £3,600 could be saved in Cash ISAs) to £10,200 (of which £5,100 can be saved in Cash ISAs). The subscription limits will increase for anyone born before 6th April 1960 from 6th October 2009. If you were born on or after 6th April 1960, the enhanced limits will become effective from 6th April 2010. Please see the table below for more details.

Age Existing limits New limits From
Born before 6th April 1960 £7,200 up to £3,600 can be in a cash ISA £10,200 up to £5,100 can be in a cash ISA 6th October 2009
Born on or after 6th April 1960 £7,200 up to £3,600 can be in a cash ISA £10,200 up to £5,100 can be in a cash ISA 6th April 2010 onwards
Aged 16 or 17 £3,600 all of which needs to be held in a cash ISA £5,100 all of which needs to held in a cash ISA 6th April 2010 onwards

Subscription limits apply only to the amount subscribed, and the amount subscribed is not reduced if an investor makes a subsequent withdrawal. An investor who has not subscribed up to the limit in any year cannot carry forward the difference and add it to the subscription limit for the next year.

Who can open a Cash ISA?
An investor can open a Cash ISA in the tax year in which they become 16 but only on or after their 16th birthday. They must also be resident and ordinarily resident in the U.K. for tax purposes or, if not resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas) are treated as being performed in the U.K. or they must be married to, or in a civil partnership with, a person who performs such duties. Only individuals who have not opened a Cash ISA with another organisation in the current tax year can open a Cash ISA with the Loughborough. By opening a Cash ISA, you will be limiting the amount of investment that you can make in a Stocks & Shares ISA.

ISAs cannot be held in joint names.
How do I open an account?
For further information on how to open an ISA please visit the How to apply page.
Can I transfer my Cash ISA?
The Loughborough DOES accept the transfer of an existing Cash ISA from another provider.

An investor will be allowed to request the transfer of funds in a Loughborough Cash ISA to another ISA manager at any time and can state the time period within which this transfer should take place. The Society will normally only require two working days notice to effect transfers for an instant access Cash ISA and the notice period or penalty will apply to the 30 Day Cash ISA and closed issue 90 Day Cash ISA account.

If the transfer relates to the current year subscriptions then the whole of those subscriptions must be transferred. Funds in an ISA from previous years investments may be transferred from one manager to another in whole or in part.

The Loughborough DOES NOT charge for making a transfer, and DOES accept transfers from other ISA managers.
What about my TESSA Only ISA (TOISA)?
Since 6 April 2008, TOISAs no longer exist and these accounts have been automatically re-classified as Instant Access Cash ISAs.
Terms and Conditions
The Loughborough Cash ISA.
■ Minimum opening amount of £1.
■ Minimum subscription of £1.
■ Interest is variable, calculated daily and is added to the account on 5 April.
■ Instant Access.
■ Investors will normally only be allowed to hold one Cash ISA account with the Society, irrespective of which tax year the initial subscription was made.
Interest
The favourable tax treatment of the interest earned on a Cash ISA is the responsibility of the government and may not be maintained in the future.
Where People Make The Difference

The favourable tax treatment of the interest earned on a Mini Cash ISA is the responsibility of the government and may not be maintained in the future. ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan. We will notify you if for any reason of any failure to satisfy the provisions of ISA regulations your ISA has, or will, become void.