A guide to tax-free savings

by Leeds Building Society

A guide to tax-free savings

With a cash ISA (short for "individual savings account") you can save a set amount without paying tax (known as "tax-free savings"§) each financial year. There are lots of different cash ISAs you can choose from.

If you want easy access to your savings, an instant access ISA could be your best option. However, these usually have lower interest rates compared to fixed rate ISAs.

If you can afford to leave your savings alone, fixed rate (or fixed term) ISAs usually offer higher interest rates.

It is possible to move your ISA between providers by filling in an ISA transfer form.

Once the tax year is over, you’ll keep your savings on a tax-free basis for as long as the money stays in an ISA account.

These types of accounts come with their own rules and restrictions. You should check the terms and conditions before you apply for any savings account.

Ready to start saving?

Apply for a Cash ISA

§Tax free means that interest payable is exempt from income tax.

Cash ISAs are available to individuals aged 16 and over who are resident in the UK for tax purposes. Leeds Building Society only offers Cash ISAs.

The maximum you can invest in a Cash ISA for the 2016/2017 tax year is £15,240 less any amount invested in a Stocks and Shares ISA and/or an Innovative Finance ISA in the same tax year.

Fixed rate products are linked to market rates at the time of issue. Future fixed rate products may be offered at higher or lower rates depending upon the changes in market conditions.

This guide is intended as a summary only and does not constitute financial or legal advice given by Leeds Building Society. No reliance should be placed on this guide and you must make your own decisions, we recommend that you seek legal and/or financial advice if you have any questions or queries.