ISA - What is an ISA? - NatWest

Couple sitting by the desk comparing Cash ISA accounts

ISA Accounts

Everything you need to know about the tax-free way to save.

Want to manage your existing NatWest cash ISA?

Time is running out to make the most of your 2016/2017 ISA allowance of up to £15,240.

The tax year ends on the 5th April so you need act before this date to open a Cash ISA account for the 2016/2017 tax year.

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Cash ISAs What is a Cash ISA?
Tax-free interest

How much can you put in a Cash ISA?

The 2016/2017 Cash ISA Allowance is £15,240 up to 5th April 2017. 

Transfer in from previous years' ISAs

If you want to move your current or previous cash ISA balances between providers, there’s a simple ISA transfer form you can complete that will safeguards your tax-free entitlement.

Subscribe to both a Cash ISA and Help to Buy: ISA in the same tax year

You can save in a Cash ISA and a Help to Buy: ISA if they're both with NatWest, as we count them as one overall Cash ISA subscription. 

It works alongside your Personal Savings Allowance

As of 6th April 2016, you can earn tax-free interest on an ISA that doesn't impact on your Personal Savings Allowance. You can read more about the Personal Savings Allowance, here.

Here are some handy resources to help you get to grips with ISAs:


NatWest guide to ISAs (pdf, opens in a new window)

 

 

Compare our range of ISAs

Help to Buy: ISA

A helping hand towards your first home



Full details

Cash ISA

Instant access tax-free savings account 

Full details

Fixed Rate ISA

Fixed interest rate tax-free account for one or two years 

Full details
Decide if it’s right for you

If you are saving to buy your first home, save money into a Help to Buy: ISA and the UK Government will boost your savings by 25%.

You want tax-free savings within the annual limit and want instant access to your money

You want tax-free savings within the annual limit and to know how much interest you’ll earn in advance. You’re happy to leave your money untouched while you save  

Interest

Help to Buy: ISA

Paid monthly

Cash ISA

Paid monthly  

Fixed Rate ISA

Paid annually  

AER
  • 2.00% AER on all balances
  • 1.98% tax free rate
Interest rate unit: AER/ tax-free p.a. (variable)
  • 0.01% for balances under £25,000
  • 0.05% for balances between £25,000 and £49,999
  • 0.25% for balances between £50,000 and £99,999
  • 0.50% for balances over £100,000

Interest rate unit: AER/ tax-free p.a. (variable)

1 year fixed

  • 0.50% for balances between £1,000 and £24,999
  • 0.55% for balances over £25,000

2 year fixed

  • 0.60% for balances between £1,000 and £24,999
  • 0.65% for balances over £25,000

Interest rates unit: AER/ tax-free p.a. (fixed)
Minimum deposit to open account

£1

£1

£1,000

Key conditions and limitations
  • You can save a maximum of £1,200 in the first calendar month of funding and then up to a maximum of £200 a month
  • Available to first time buyers aged 16 or over who are UK residents and have never owned a residential property or any interest in land in or outside the UK
  • The ISA allowance for the 2016/2017 tax year is £15,240.
  • An Early Closure Charge may be applicable. 
Key definitions

Annual Equivalent Rate (AER) - This is a notional rate used for interest bearing accounts which illustrates the interest rate if paid and compounded each year. It helps you to compare the effective rates of credit interest on different accounts. 

Tax free p.a. – This means interest payable is exempt from UK income tax.

 

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