ISA Enquiries

How much can I save in an ISA?

The ISA allowance is the maximum you can pay into ISAs in a tax year. You can pay into multiple ISAs during the tax year, as long as:

• in total across all your ISAs you do not pay in more than the ISA allowance during that tax year
• you do not pay into more than one of each type of ISA.

This tax year, the ISA allowance is £20,000.

There are four types of ISA:

• cash ISA
• stocks and shares ISA
• Lifetime ISA
• innovative finance ISA.

You can only pay into one of each type of ISA each tax year. For example, if you pay into a cash ISA you cannot pay into a different cash ISA in the same tax year. You could choose to also pay into one of each of the other three types of ISA as long as in total you don’t exceed that tax year’s ISA allowance.

The Lifetime ISA has it’s own limit each tax year, so you cannot pay the full ISA allowance into this type of ISA.

The Help to Buy: ISA is a cash ISA. You can pay up to £200 into a Help to Buy: ISA each calendar month. This monthly limit means you cannot reach the full ISA allowance with just this account. To reach the full ISA allowance, you will need to also pay into other permitted types of ISA. If you pay into a Help to Buy: ISA, you cannot pay into another cash ISA within the same tax year.

When does the tax year start and end?

Tax years run from 6th April one year to 5th April the following year.

What is the difference between a cash ISA, a lifetime ISA, stocks and shares ISA and an innovative finance ISA?

• Cash ISAs let you save without having to pay any income tax on the interest you earn. Your money is at no more risk than any other savings account.
• Stocks and shares ISAs are an option if you’re looking to invest for at least 5 to 10 years. They let you save without paying any personal tax on any income received or increase in the value of your investment. Unlike cash ISAs, the value of your investment can go down as well as up and you may get back less than you originally invested.
• Innovative finance ISAs are not offered by Bank of Scotland, but let you participate in peer to peer lending using your savings without paying any personal tax on the income received. The value of your investment can go down as well as up and you may get back less than you originally invested.
• Lifetime ISAs Introduced in April 2017 the Lifetime ISA will allow you to use some or all of the money to buy your first home, or keep it until you’re 60. You also receive a government bonus of 25% (up to £1,000) a year.

What's the difference between tax free and tax efficient?

A cash ISA is tax-free. This means that you pay no income tax on the interest you earn. Stocks and shares ISAs are tax-efficient, which is a term used to describe investments that offer tax benefits or tax relief. Any increase in value of the investments in your stocks and shares ISA is free of any personal liability to Capital Gains Tax, you don't pay tax on interest earned on bonds. Dividends received on shares held in an Individual Savings Account (ISA), will continue to be tax free.

Can I fund more than one ISA in a tax year?

You are limited on how many ISAs you can subscribe to each tax year. You can only put money into one cash ISA and/or one stocks and shares ISA and/ or one lifetime ISA and/ or one innovative finance ISA and you must make sure you don’t exceed the total ISA allowance for the tax year. The only exception is if you have opened a separate ISA to to pay in an Additional Permitted Subscription allowance following the death of a spouse or civil partner.

Will I get charged for transferring my ISA to Bank of Scotland?

Bank of Scotland will not charge you for transferring your ISA, but your existing ISA manager may make administration charges for the transfer, such as for supplying information. Unfortunately, we’re not able to refund any charges made by your existing provider or refund any interest and/or bonus you may lose by transferring. You’ll need to check with your existing ISA provider.

When can I transfer my ISA from another provider to Bank of Scotland?

You can transfer your ISA at any time; you don’t have to wait until the end of the tax year.

Can I transfer more than one ISA?

Absolutely. Just sign one form for each ISA you want to transfer to Bank of Scotland.

If I transfer my ISA to Bank of Scotland 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 ISA?

No, unless you are transferring current tax year ISA savings. Apart from this it’s up to you – you can transfer as much as you like from previous tax years. You could, for example, transfer your savings from the year before to the new cash ISA and leave your current tax year savings where they are.

Can I transfer into a Help to Buy: ISA?

Yes you can if you have a Help to Buy: ISA with another bank or building society. Your Help to Buy: ISA must be transferred to us in full. Remember you are only allowed to have one Help to Buy: ISA.

Can I transfer my Child Trust Fund to a Junior Cash ISA?

From 6th April 2015, a Child Trust Fund can be transferred into a Junior Cash ISA. This can be done at your local branch.

If I’ve saved part of this year’s tax-free ISA allowance with another provider can I transfer this portion of my ISA and save the rest of the allowance with Bank of Scotland?

Yes you can. For example, if you’ve saved £2,000 in a cash ISA with another provider, you could transfer your ISA balances to Bank of Scotland and save the further £18,000 this tax year with us. The total amount saved in a cash ISA should not exceed the overall limit of £20,000 in the current tax year.

If I have savings in a ISA from a previous tax year with another provider, can I transfer it all and still have this year’s tax-free allowance on top?

Yes, you can transfer it all to your new Bank of Scotland ISA. As long as you haven’t already topped up your ISA in the current tax year, you can add the full £20,000 you get as your tax-free ISA allowance.

If I’ve already saved the maximum in an ISA, can I take some out and then top it up again later in the same tax year?

Yes. With the introduction of flexible ISAs, you will be able 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. So, say you pay £20,000 into an ISA and then take out £500, you can top it up with £500 before the end of the tax year. The allowance resets every tax year on the 6th of April.

Your ability to withdraw and replace funds may be limited by the particular conditions of your ISA, for example, if you have a Help to Buy: ISA.

I’m saving to buy a house with another person. Can we have a joint Help To Buy: ISA?

ISAs cannot be opened jointly. Please note, Help to Buy: ISA is no longer available for new customers from 1 December 2019. If you are an existing Help to Buy: ISA customer you can still claim the Government bonus or transfer your Help to Buy: ISA to us from elsewhere.

What’s the maximum I can save?

Save up to £200 a month (including the month you transfer your account to us from another provider), however the 25% bonus has a cap of £3,000 which would be reached when you have saved £12,000.

Can I get the money paid directly to me?

No, the scheme and 25% bonus is administered by a 3rd party on behalf of the Government and the money is transferred to your conveyancer.

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

You'll need to close your account in one transaction 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?

We'll set your Help to Buy: ISA back up with the savings you had in at the point you claimed the bonus. The bonus goes back to the scheme administrator but can be claimed again when you find another home.

If your house sale has fallen through due to Covid-19 (up to 30 June 2020) you will have 15 months (rather than the normal 12) to reinstate your Help to Buy: ISA from the date you first closed the account and your conveyancer should give you a Purchase Failure Notice stating 15 months.

How do I close my Help to Buy: ISA?

You need to visit a branch to close your Help to Buy: ISA.
If you withdraw or transfer any money to another account before closing your Help to Buy: ISA, that amount will not be eligible for the bonus.

Can I withdraw money from my Help to Buy: ISA?

Yes you can. 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.

Can I renew my existing ISA into a Help to Buy: ISA?

No you can’t renew an existing ISA into a Help to Buy: ISA. You can only transfer your existing Help to Buy: ISA to us from another provider.

Can I renew my Help to Buy: ISA into another ISA product?

Yes you can, however, the Government bonus cannot be claimed if you move to a non Help to Buy: ISA.

The person I’m purchasing my property with is not a first time buyer. Can I still have a Help to Buy: ISA and claim the bonus?

Yes, as long as you meet all the other eligibility criteria. Anyone that is not a first time buyer would not be eligible for a Help to Buy: ISA bonus.

Can I make faster payments or transfers into my Help to Buy: ISA?

No. You must pay into your account by standing order. This should reach us by the 25th of the month.

If I’ve already saved the maximum in an ISA, can I take some out and then top it up again later in the same tax year?

Yes. With the introduction of flexible ISAs, you will be able 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. So, say you pay £20,000 into an ISA and then take out £500, you can top it up with £500 before the end of the tax year. The allowance resets every tax year on the 6th of April.

Your ability to withdraw and replace funds may be limited by the particular conditions of your ISA, for example, if you have a Help to Buy: ISA

Junior Stocks & Shares ISA

Take a look at our section specifically for Junior Stocks & Shares ISA.