Cash Individual Savings Accounts (ISAs)

ISAs, or Individual Savings Accounts, were set up by the government to encourage people to save, and offer significant tax benefits. There are two types of ISA, a Share ISA and a Cash ISA. Both products are described in our ISA Terms and Conditions.

North London Credit Union only offers Cash ISAs. These ensure the return of 100% of your capital, and (subject to our terms and conditions) pay a guaranteed return on the amount invested that is free of all United Kingdom tax.

At a glance:

• Interest is free of Income Tax and Capital Gains Tax
• All adult savings accounts include Life Cover up to age 80 at no extra cost to the saver, meaning, for example, that in the event of your death before age 65 your savings would be doubled. (Terms and Conditions apply)
• You can view your account online
• Depending on your employer, payroll deduction facilities may be available if you are saving regularly
• Like all deposits invested with us, your savings will be lent to local people and businesses to benefit the community
• Your savings are 100% covered Your savings are 100% covered by the Financial Services Compensation Scheme, which is backed by HM Government, and if you save with us you will know your money will benefit other people in the community.
  

You can invest up to £10,680 for the 2011/12 tax year (limits vary from year to year, and are fixed by the government), and £5,340 of this can be invested in a cash ISA. You can have up to £10,000 in all the accounts you have with us.

What types of Cash ISA do you offer?

We currently offer two types of Cash ISA account:

• A twelve month fixed rate Cash ISA paying 4% for a minimum deposit of £2,000, or 3% below that; and
• A ninety-day notice rolling account which can be added to as the year progresses, offering a return of 2.5% per annum.

Who can have one?

ISAs are available for members of North London Credit Union over the age of 16. (If you are not already a member see how you can join North London Credit Union.) You must be a UK resident and ordinarily residing in the UK, or be performing duties as a Crown employee serving overseas and paid out of the public revenue of the UK (typically a serving member of the armed forces, or a diplomat), or be married to, or in a civil partnership with, such a person.

Most importantly, you must not have subscribed to another Cash ISA in that tax year.

Are there any charges?

There are no fees or charges of any kind, and interest starts to accumulate as soon as we receive cleared funds from you.

How much can I pay in?

The Cash ISA limit for the tax year 2011/12 is £5,340 (as long as you have invested only £5,340 in a share ISA during that year). This is the maximum you can deposit into your account over the tax year. So if you were to save £1000 and then withdraw it, you would only be able to deposit a further £4,340 into the account for the rest of the tax year. You only need to keep an amount of £5 in your North London Credit Union Cash ISA in order to keep it open and ensure it is fully operating.

Can I transfer an existing ISA into a North London Credit Union ISA?

You can transfer an ISA from another provider, but remember that North London Credit Union is unable to accept more than £10,000 in total savings from any one individual. (You should also check the terms and conditions of your current ISA account to ensure you will not incur any penalty when withdrawing your money from your ISA account with them.)

How do I pay in?

You can make a lump sum deposit by cheque or bank transfer (being sure to quote your NLCU membership number when you do so), or you can ask us to transfer money from your existing NLCU savings account. Or you can ask your existing ISA provider to transfer funds to us. If you are transferring funds to us from another ISA provider, you can instruct that provider to send your money to us, or we can do this for you (but will of course need your authority).

If you are taking advantage of the ninety-day notice account, you can make monthly payments by direct debit, standing order, or payroll deduction (if that is applicable). If you are already making a regular payment to us you can increase this to cover your ISA contribution.

What if I need to withdraw the money?

With our Ninety-Day Notice account, you must give at least 90 days notice for every withdrawal. The one-year account obviously runs for a year from when the money is deposited.

If you need to make a withdrawal from either type of ISA immediately we will do our best to help you, but there will be a penalty equal to three months’ interest.

ISAs are intended for long-term investment of cash that is surplus to your requirements. You should keep funds you want to access easily on our ordinary savings account. Please also remember that once you withdraw money paid into your ISA, it loses its “tax free status”. So if for example you had saved £1,000 and then withdrew it, you would only be able to pay in a further £4,340 in the same tax year before you reach the limit.

What other benefits do I get with my North London Credit Union ISA?

Like the money in your ordinary savings account your ISA is included in our free life insurance scheme, so up to age 65 your balances with us will be doubled (subject to terms and conditions) and paid out to your next of kin should the worst happen. This cover is exclusive to credit unions and is at absolutely no extra cost to you.

When you invest with North London Credit Union you know you are saving with an ethical organisation. Like all the money that is entrusted to us, your savings will be lent to local people and to businesses based in London, thereby benefiting the community. As a saver, you will be a member of the Credit Union, and able to act as a volunteer helper and participate in its development if you wish to do so. We act in an ethical and transparent manner, and publish our accounts in full to members every year.

Most importantly, like all the money you deposit with us your ISA account is completely safe. As a member of the Financial Services Compensation Scheme (an industry scheme underwritten by the government to which we contribute) your savings are absolutely secure. You can find out more by clicking THIS LINK.

To summarise, your investment with us

For full terms and conditions please click here

For an ISA application form please click here