What is an ISA Transfer?
The value of an ISA can be transferred between one ISA Manager and another. In the case of a Cash ISA, this means that a person can move their ISA to an account offered by a different bank, in order to try to get the best interest rate available. It’s important to note, however, that the balance has to be transferred using a specific process; if the money is withdrawn from an ISA and then deposited elsewhere, it will lose its ISA status.
Does Castle Trust Bank accept ISA Transfers?
We do accept ISA Transfers. If you wish to transfer an existing ISA to us, you’ll need to open a new ISA account first as part of your application journey, you will then need to confirm 'Yes' to transferring an existing ISA, and provide the details of that account. Please note you will need to open a new account for each ISA you wish to transfer. If you want to understand the process in more detail, please see our ISA Transfer Guide.
What is a Personal Savings Allowance?
Your Personal Savings Allowance is the amount of interest you are allowed to earn from savings (not including interest earned on ISAs) each tax year, before the interest is added to your personal income for the calculation of your personal income tax liability. The Personal Savings Allowance is applied across interest received from all of your bank accounts (except ISAs), not just from your Castle Trust Bank accounts.
The allowance is applied on a sliding scale, depending on your personal income tax circumstances:
• If you're a basic rate tax payer, your allowance is £1,000
• If you're a higher rate tax payer, your allowance is £500
• There is no allowance for additional rate tax payers
An important point to note is that interest is counted towards the allowance in the tax year that you can access it. This means that if you take out a fixed rate savings account with a term of more than one year, and interest is paid at maturity, all interest paid on that account is counted towards the Personal Savings Allowance in the year the account matures.
Please note, this material is provided for informational purposes only and does not represent financial advice or recommendation. The above information is based on the current HMRC legislation and is subject to change.