ISA stands for Individual Savings Account and offers the benefit of tax free savings. You can pay up to £20,000 into your ISA in the current tax year.
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| Minimum Balance | £1 + |
| Interest Rate (AER1/Gross2) | 0.75% tax free^ |
| Interest Payable | Annually on 5 April |
| Withdrawals | Withdrawals or closure subject to 90 days written notice or the loss of 90 days interest |
| Access | Post or branch |
| Minimum Balance | £500 + |
| Interest Rate (AER1/Gross2) | 0.75% tax free^ |
| Interest Payable | Annually on 5 April and on maturity |
| Withdrawals | No withdrawals allowed. Early closure in branch or by post is subject to the loss of 180 days interest on the closing balance. |
| Access | Post or branch |
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. AERs on the Monthly Income account assume interest is added to the account each month although in practice the option to have interest added in this way is not available.
The gross rate is the contractual rate of interest payable without tax taken off.
If separate AER/Gross rates are not quoted, both rates are identical.
Tax free means exempt from UK income and capital gains tax in the hands of the investor.
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