2015/2016 Tax Efficient Cash ISA Accounts

Transcription

1 2015/2016 Tax Efficient Cash ISA Accounts PRODUCT FACTSHEET About this Factsheet This factsheet gives you information about our range of Cash Individual Savings Accounts (ISAs). The Financial Conduct Authority is a financial services regulator. It requires us, Yorkshire Building Society trading as Norwich & Peterborough Building Society, to give you this important information to help you decide which savings account is right for you. You should read this document carefully so that you understand what you are buying and keep it safe for future reference. It should be read in conjunction with the General Savings and Investment Conditions and retained for your records. Together the product factsheet and the General Savings and Investment Conditions explain how your account works. Conditions 4, 12 and 13 of the General Savings and Investment Conditions explain the circumstances in which we may change the interest rate, the terms and conditions and any charges relating to your account and how we will tell you about the changes. For full details of any charges please refer to our Savings Fees and Charges Information leaflet available at any of our branches, by visiting nandp.co.uk or by calling It is important that you read all of the terms applicable before you decide to open the account. If there is any inconsistency between a general term and a product term, the product term will apply. If you open an account it will be with Yorkshire Building Society (trading as Norwich & Peterborough Building Society and N&P). N&P is operated under its own brand with its own products. References in this factsheet to you and your are to the account holder. References to we, our, us, N&P or to the Society are to Yorkshire Building Society trading as Norwich & Peterborough Building Society. About ISAs Individual Savings Accounts (ISAs) were introduced by the Government to allow people to save tax-efficiently. There are two types of ISA s; Cash ISA and Stocks and Shares ISA. The main features of ISAs are: The interest on a Cash ISA is tax free and gains on Stocks and Shares ISAs are not subject to Capital Gains Tax To invest in an ISA you have to be resident in the UK for tax purposes or be a qualifying Crown employee or married to, or in a civil partnership with, a qualified Crown employee Cash ISAs are available to those aged 16 and over, Stocks and Shares ISAs available to those 18 and over ISAs allow you to invest in Cash and Stocks and Shares or a combination of the two. As an approved ISA Manager, we can offer customers our own range of Cash ISAs. How your ISA allowance works You can invest in two separate ISA s each year; a Cash ISA and a Stocks and Shares ISA. Every eligible adult will have a total annual investment allowance of 15,240 for the 2015/2016 tax year; Open a Cash ISA from age 16 and invest up to 15,240 with one provider; or Open a Stocks & Shares ISA from age 18 and invest up to 15,240 with the same or another provider A combination of Cash ISA and Stocks & Shares ISA up to the overall maximum subscription limit of 15,240 with the same or another provider. Other information to note: You can choose a Cash ISA and a Stocks and Shares ISA from the same or different providers. A husband and wife can have one ISA each, but they cannot be held in joint names. You can transfer any existing ISAs, Cash and Stocks and Shares, you hold with another provider to N&P (depending on individual ISA conditions). Transfer charges may apply so please check with your current provider. HM Revenue & Customs rules set the maximum amount you can invest in ISAs each tax year. Once the maximum has been invested for the tax year no more can be added, even if a withdrawal has been made which has reduced the balance below the maximum. You must notify the Society if you cease to be resident in the UK for tax purposes or, if not so resident, cease to perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or cease to be married to, or in a civil partnership with, a person who performs such duties. The Cash ISA will continue to be exempt from UK tax, but no further subscriptions can be made until you meet the residency requirements again. Your Cash ISA application ceases to be valid at the end of a tax year in which you do not make a subscription. Where this happens, you must make a fresh application before subscriptions can recommence. In the event of death whilst the Cash ISA remains open, interest to the date of death will remain free from tax, but interest arising after that date will be subject to tax. No further subscriptions will be permitted into the Cash ISA. What is a Stakeholder Cash ISA? To meet the Government s Stakeholder standards a Cash ISA must allow you to put in or take out as little as 10 with no more than 7 days notice. There must be no charges, easy access and an interest rate no lower than 1% below Bank Base Rate. Our Instant ISA and Gold Cash ISA (Issue 2) do not meet the Stakeholder standards because the interest rate paid is not linked to Bank Base Rate. Our Fixed Rate Cash ISAs do not meet these standards because they have a higher minimum investment, the interest rate is not linked in any way to Bank Base Rate and instant access is allowed subject to a loss of interest on the amount withdrawn, or transferred, or on the closing balance. Our Branch Notice Saver ISA does not meet these standards because the interest rate is not linked in any way to Bank Base Rate and access is allowed only on 90 days notice or subject to the loss of a sum equivalent to 90 days interest on the amount withdrawn, transferred or on the closing balance. Page 1 of 5

2 What are the Tax benefits? Investing within an ISA offers certain personal tax benefits. If you choose to invest in a Cash ISA your investment will be completely free of both income and Capital Gains Taxes. If you choose to invest in a Stocks and Shares ISA, you will not pay tax on any money you make from your investment. Although Stocks and Shares ISAs are tax efficient, the underlying funds may have a deductable 10% tax on dividend income that cannot be reclaimed. The value of an investment in a stocks and shares ISA is not guaranteed and can fall as well as rise and you may get back less than you invested. For Cash ISAs we are required to supply the HM Revenue & Custom with particulars of interest paid to investors each year. The value of current tax-relief depends on the financial circumstances of the investor and tax rates may The law relating to taxation may also change in the future. ISAs available from Norwich & Peterborough Building Society Choosing an ISA that s right for you will depend on how easily you want to access your money. To find out more about our Cash ISAs that Norwich & Peterborough Building Society offer, please visit any of our branches or telephone our Contact Centre on As well as Cash ISAs, a Share Dealing service, provided by Jarvis Investment Management Ltd (Jarvis) is also available if you are interested in a Stocks and Shares ISA. This is an execution-only Share Dealing service provided by Jarvis, which means you won t get any advice on your investment decisions but gives you full control to manage your own portfolio and choose your own strategy. Whether you're an experienced investor or just wanting to sell a few shares, the Share Dealing service offers a range of accounts that allow you to trade quickly and easily by telephone, online or by post. Jarvis is entirely responsible for the performance of the services. Jarvis is authorised and regulated by the Financial Conduct Authority. Jarvis is a member of the London Stock Exchange and ISDX markets, and an approved HM Revenue & Customs ISA Manager. We can also offer you ISA options with managed investments in stocks and shares through a Legal & General Financial Consultant. You should note that any advice given will relate only to the products provided by Legal & General. N&P chooses to introduce its customers to Legal & General for the purposes of advising on and arranging life assurance and investment products bearing Legal & General s name. THE VALUE OF AN INVESTMENT IN A STOCKS AND SHARES ISA IS NOT GUARANTEED AND CAN FALL AS WELL AS RISE AND YOU MAY GET BACK LESS THAN YOU INVESTED Branch Notice Saver ISA Key Product Information about our Branch Notice Saver ISA rates (AERs) Branch Notice Saver ISA Variable rate. Please see separate ISA rate insert for current rate. is paid tax-free. Tax-free means interest is not subject to tax. No bonus is payable on this account. or close the account without loss of interest by giving 90 days notice. Earlier access or closure is permitted subject to the loss of 90 days interest on the amount withdrawn. This account can be opened and operated at any of our branches. It can also be operated through the post and via the internet with limited facilities. Minimum balance 1 ISA Charges paid annually back to the account on 6 April. ISA transfers from other providers accepted. Transfer charges may apply, please check with your current provider. There are no charges for having a Branch Notice Saver ISA. However, if you make a withdrawal or close your account without notice, you will lose 90 days interest on the amount withdrawn. Page 2 of 5

3 Gold Cash ISA (Issue 2) Gold Cash ISA (Issue 2) Key Product Information about our Gold Cash ISA (Issue 2) rates (AERs) Variable rate. Please see separate ISA rate insert or Gold Current Account Rate and Charges for current rate. is paid tax-free. Tax-free means interest is not subject to tax. No bonus will be paid on this account. Easy access without notice or loss of interest. This account can be opened and operated at any of our branches or by post. It can also be operated via the internet. Minimum balance 10 paid annually back to the account on 6 April. Cash ISA transfers from other providers may be transferred in. Transfer charges may apply, please check with your current provider. ISA Charges There are no charges for having a Gold Cash ISA (Issue 2). Restrictions Gold Cash ISA (Issue 2) is available exclusively to Gold Classic Current Account customers. This is a Non Payment account, please refer to the General Savings and Investment Conditions for Instant ISA Key Product Information about our Instant ISA rates (AERs) Instant ISA Variable rate. Please see separate ISA rate insert for current rate. is paid tax-free. Tax-free means interest is not subject to tax. No bonus is payable on this account. Easy access without notice or loss of interest. This account can be opened and operated at any of our branches or by post. It can also be operated via the internet. Minimum balance 10 ISA Transfers in Charges paid annually on 6 April. ISA transfers from other providers accepted. Transfer charges may apply, please check with your current provider. There are no charges for having an Instant ISA. more Page 3 of 5

4 Fixed Rate Cash ISA Key Product Information about our Fixed Rate Cash ISA rates (AERs) 3 Year Fixed Rate Cash ISA Fixed rate for 3 years. Our variable rate Instant ISA will apply thereafter. Please see ISA rate insert for current rates. is paid tax-free. Tax-free means interest is not subject to tax. No bonus is payable on these accounts. to deposits held in an 3 Year Fixed Rate Cash ISA during the fixed rate period are subject to a loss equivalent to 180 days interest on the amount withdrawn. This account can be operated at any of our branches or by post. It can also be operated via the internet with limited facilities. Minimum balance 100 ISA Charges Restrictions paid annually back to the account on 6 April and on maturity. Cash ISA transfers from other providers accepted at account opening only. will be paid from the day that we receive the ISA transfer documentation and cheque from the original ISA provider. Where there is a delay in N&P receiving this information, it will reduce the number of days interest earned during the fixed rate period. Transfer charges may apply, please check with your current provider. There are no charges for having a Fixed Rate Cash ISA. However, if you make a withdrawal or close your account, you will lose a sum equivalent to a specified period of interest on the amount withdrawn (depending on the chosen fixed term). No additional deposits are allowed. A Fixed Rate Cash ISA cannot be opened without the required deposit. As fixed rates are only available for a limited period of time, it is advisable to open an account with the required deposit as soon as possible as the rate could be withdrawn at any time. We may not offer a full range of fixed rate Cash ISAs at all times. Page 4 of 5

5 IMPORTANT INFORMATION RELATING TO SAVINGS AND INVESTMENT ACCOUNTS AER AER means Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time. on variable rate Cash ISA s is paid annually into the account on 6 April each year. For our fixed rate Cash ISAs interest is also paid on the evening that the account matures. Cheques paid into an account paying a variable rate of interest will earn interest from the second day after the day we receive them. Cheques paid into an account paying a fixed rate of interest will earn interest from the day we receive them. Money paid into your account in cash, Faster Payment or by Bankers Automated Credit will earn interest from the day we receive it. After that, interest is paid for each full day your money is invested. Your money will earn interest up to, but excluding the day you withdraw your money. ISA cancellation If you open a Cash ISA and then change your mind within 14 days of opening, you may cancel your ISA and we will give you your money back with any interest it has earned (subject to the relevant funds having cleared). We will not apply any notice period or charge. You can then open another Cash ISA in the same tax year if you wish. To cancel: write to us at: Norwich & Peterborough Building Society, Peterborough Business Park, Lynch Wood, Peterborough, PE2 6WZ. Writing Cheques When you write a cheque, it will help prevent fraud if you clearly write the name of the person you are paying the cheque to and put extra information about them on the cheque, especially if you are not yourself paying a cheque in directly (e.g. because you are sending a cheque by post or passing it to someone else for them to pay in). If you are making a cheque payable simply to a bank or building society, do not make the cheque payable simply to that organisation. Add further details in the payee line, for example Norwich & Peterborough Building Society, re J Jones, Account No XXXX. You should draw a line through unused space on the cheque so unauthorised people cannot add extra numbers or names. Transferring my ISA All our Cash ISAs allow you access to your money. However, you may lose a sum equivalent to a specified period of interest on the amount withdrawn or transferred depending on the ISA chosen. On accounts that allow withdrawals subject to a loss equivalent to a specified number of days interest, any outstanding amount due will be deducted from the interest that has been credited to the account or from the balance of the account where insufficient interest has accrued. We aim to transfer your Cash ISA, or part of your Cash ISA, to the new ISA manager within 5 working days (i.e. any day excluding Saturday, Sunday and any other days on which our branches are closed for business) of receiving your instructions. If transferring from the current tax year s allowance, the full amount must be transferred. You can transfer your Cash ISA to a Stocks and Shares ISA. Transfers from a Stocks and Shares ISA to a Cash ISA are also permitted. Money saved in previous tax years can be transferred without affecting your annual ISA allowance. How to open an account It s easy to open an account with Norwich & Peterborough Building Society. Simply complete the appropriate application form indicating which type of account you wish to open and take it with your cheque to your local branch. Please note customers are required to provide their National Insurance Number when applying for an ISA. Postal customers Our postal address for new or existing customers who are unable to visit a branch is: FREEPOST NORWICH & PETERBOROUGH Please ensure you write the address clearly using BLOCK CAPITALS. Identification Please refer to the separate Proving your identity leaflet for details of identification requirements. Important information about compensation arrangements Your eligible deposits with Yorkshire Building Society are protected up to a total of 75,000 by the Financial Services Compensation Scheme, the UK s deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Yorkshire Building Society, Barnsley Building Society, Chelsea Building Society, Norwich & Peterborough Building Society, Egg. Offset deposits through our subsidiary Accord Mortgages Limited are held by Yorkshire Building Society on behalf of Accord. Any total deposits you hold above the 75,000 limit between these brands are unlikely to be covered. For further information please call us on ask at your local branch, or visit the FSCS website at Our printed material is available in alternative formats e.g. large print, Braille or CD. Please contact your local branch or call us on Norwich & Peterborough Building Society will communicate with you in English. All communications with us may be monitored/recorded to improve the quality of our service and for your protection and security. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile. Charges to third party numbers may vary. Prices can be checked with the relevant company. Norwich & Peterborough Building Society and N&P are trading names of Yorkshire Building Society. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in the Financial Services Register and its registration number is Principal office of Yorkshire Building Society: Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ. Page 5 of 5 YRB161S