Cash ISA
Common enquiries
What is a Cash ISA?
What is the interest rate on The Co-operative Bank Cash ISA?
When is interest paid on The Co-operative Bank Cash ISA?
Will your interest rate stay the same?
Where and how do I pay into the account?
When is the latest I can pay money into cash Isa for this tax year?
When is the latest I can apply for an account for this tax year?
Where can I withdraw money?
Do I get a cash card?
What is the yearly allowance?
What happens if I put too much money in my account?
I've already got an ISA, can I apply for one with you?
Do I need to open a new Cash ISA with The Co-operative Bank each tax year?
What should I do if I didn't pay into my Cash ISA from The Co-operative Bank in the last tax year?
Can I open an ISA in someone else's name?
How long must an ISA be open for?
Can I have a cash ISA and a stocks & shares ISA?
Can I have a stocks & shares ISA with The Co-operative Bank?
Will I get a statement to show me the transactions in my account?
Q. What is a Cash ISA?
A. Individual savings accounts (ISA’s) were introduced in April 1999 and replaced personal equity plans (PEPs) and tax-exempt special savings accounts (TESSA's).
An ISA is not an investment in its own right, it's a tax-free wrapper in which you put your money to protect it from income and capital gains tax.
ISA’s must only offer one of the two components; Cash or Stocks/shares. Our Cash ISA is the cash component and you can put in up to £3,600 per tax year. You can still invest in the stocks/shares ISA (through CIS ISA) in the same tax year.
back to topQ.What is the interest rate on The Co-operative Bank Cash ISA?
A. click here for the latest Cash ISA interest rates
Q. When is interest paid on The Co-operative Bank Cash ISA?
A. Interest is calculated daily and paid annually to your Cash ISA account. This happens on the final working day of the tax year (5th April).
Q. Will your interest rate stay the same?
A. We are always reviewing our rates and we always try to give the best deal to our customers. Our interest rates change usually depending on whether the Bank Of England base rate changes.
Q. Where and how do I pay into the account?
A. There are a variety of ways to pay into to a Co-operative Bank Cash ISA.
- electronically - you can transfer cash electronically from another bank account
- cash - you can pay in cash in via any UK post office or Branch of The Co-operative Bank
- cheques - you can send us a cheque or pay it in via any UK post office or branch of The Co-operative Bank.
Q. When is the latest I can pay money into a cash Isa for this tax year?
A. This depends on how you’re going to pay your money into the account:
- Branch of The Co-operative Bank - Paying in a cheque at a branch of The Co-operative Bank could take up to 5 working days so this will need to be done by 30th March 2009 at the latest. Paying in cash is available immediately if paid in to a bank account using your card or if you pay in using a payment slip, these funds will be available by the end of the day.
- electronic transfer - If you’re transferring your cash from another bank you’ll need to do this by the 30th March 2009 (This may also take up to 5 working days). You’ll need to give them your Co-operative Bank Cash ISA sort code and account number. If you’ve got a Co-operative Bank Current Account or a Co-operative Bank Savings Account you can transfer money into your ISA instantly until the 5th April 2009 (this can be done up to 9pm). Just log on, and click on ‘money transfers’. All transfers must be completed .
- Standing order – You’ll need to set up an immediate payment to reach your Cash ISA account on or before the 5th April 2009.
- post office - If you’re paying in a cheque through the post office you need to pay it in by 27th March 2009. You will need a paying-in slip and a post office paying in envelope to pay in by cheque. This can take up to 6 working days.
- post - If you’re paying in by post you need to send us your cheque by 26th March 2009. You can use a blank envelope with our freepost address written on it, ‘smile, FREEPOST NEA 14877, Northampton, NN4 7BR”. Or just pop a cheque and paying-in slip into one of our prepaid envelopes. Remember, you need to allow for postage and it could take up to 5 working days for your cheques to clear.
Q. When is the latest I can apply for an account for this tax year?
A. The very latest you can apply is the 30th March 2009. Although just to be on the safe side we would recommend that you open your account before the 30th March 2009 so that it’s ready for you to make the most of this year’s tax allowance before the 5th April 2009.
We’ll be unable to give you an account number before we’ve finished opening your account and you won’t be able to pay any money into your account until this happens.
Please take into account the payment processing times mentioned above, to ensure you apply in sufficient time to allow you to transfer funds to your ISA by the 5th April. (Your method of payment choice may be limited if you leave it until the 30th to apply).
back to topQ. Where can I withdraw money?
A. You can withdraw from any branch of The Co-operative Bank or you can transfer electronically to another account.
Q. Do I get a cash card?
A. No, not with a Cash ISA from The Co-operative Bank
Q. What is the yearly allowance?
A.Your annual ISA allowance is currently £7,200. Up to £3,600 of this allowance can be saved in a cash ISA and the remainder can be saved in a stocks and shares ISA. These can both be with the same provider or each with different providers.
You can withdraw as much of the balance of your Cash ISA as you like, without any interest penalties.
The only thing you have to bear in mind is that if you do take any money out, you can't replace it. The only exception to this is if you transfer your entire balance to a Stock & Shares ISA in the current tax year. This transfer must be the whole amount, and will still be included in your annual limit. Such a transfer will be treated as if it had been invested directly into a stocks and shares ISA in the current tax year. You can then still utilise the remaining balance of your £7,200 annual limit for that tax year, including up to £3,600 in a cash ISA.
Once you've paid in your annual allowance for this tax year, you can't pay in any more money until the next tax year.
back to topQ. What happens if I put too much money in my account?
A. If you put too much into your Cash ISA from The Co-operative Bank we'll return the money to you. How long that takes will depend on how you paid it in:
- If you paid in from another account from The Co-operative Bank you'll have the money back the next day
- If you paid in via an electronic transfer from another bank you'll have the money back about 4 days later
- If you sent us a cheque we have to wait for the cheque to clear before we can send a cheque back to you.
Q. I've already got an ISA, can I apply for one with you?
A. If you aren't happy with the performance of your ISA, you can transfer it to The Co-operative Bank without losing your ISA tax-free allowance. It's important to do this as a transfer rather than closing your existing ISA.
If you open a new ISA, you must remember you cannot subscribe to more than one ISA of the same type in the same tax year otherwise you will lose the tax-free status of the money you had previously saved.
Q. Do I need to open a new Co-operative Bank Cash ISA each tax year?
A. No. You can carry on paying into one you already have.
Q. What should I do if I didn't pay into my Co-operative Bank Cash ISA in the last tax year?
A. If you did not make any deposits to your account in the last tax year, and /or do not make any deposits into your account by the end of this tax year, you will need to contact us to refresh your application before you can make any deposits in future tax years. Simply phone our Customer Services, it will only take a few minutes to do.
Q. Can I open an ISA in someone else's name?
A. No, you can't apply for an account in someone else's name.
Q. How long must an ISA be open for?
A. There are no minimum or maximum periods - but the longer you leave the money in, the more tax-free interest you earn.
Q. Can I have a stocks & shares ISA and cash ISA?
A. Yes, you can have both in the same tax year. To check your allowances, please refer to the question ‘What is the yearly allowance?
Q. Can I have a stocks & shares ISA with The Co-operative Bank?
A. The Co-operative Insurance offers stocks & shares ISA
Q. Will I get a statement to show me the transactions in my account?
A. Yes. At the end of each tax year. We will also send you a statement whenever there is a change in the interest rate.
