A guide to tax-free savings

Updated: 6th April 2021

A guide to tax-free savings

A Cash ISA, or Individual Savings Account, provides a way to save a set amount tax-free each financial year. There are lot of different cash ISAs to choose from, and which one to go for depends on your needs.

Easy access

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

Fixed rate

If you can afford to leave your savings alone, Fixed Rate ISAs normally offer higher interest rates.

It’s possible to move your ISA between providers - ask your new provider to transfer your account using an ISA Transfer form.

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.

Ask your bank or building society for more information on ISAs.

Personal savings allowance

Since 2016, basic tax payers have not had to pay tax on the first £1,000 of interest earned in other savings accounts, such as bonds. This is called a Personal Savings Allowance, and refreshes at the start of each financial year.

Explore our website for more information on savings tax and cash ISAs.

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 2021/2022 tax year is £20,000 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 based on 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.