Cash ISA

Get a higher rate on your cash savings

With the Bank of England base rate sitting at a historic low, it has become hard to find attractive yields on cash savings.

As always, tax efficiency remains an important weapon in the fight for higher returns. We are therefore delighted Bestinvest clients can now access the Scottish Widows Bank E-Cash ISA which offers:

How do I apply?

For more information and to apply please call us on 020 7189 9999.

Frequently asked questions

• Who do I send my application form to?

  Completed forms should be sent to:

  Scottish Widows Bank plc
  PO Box 12757
  67 Morrison Street
  Edinburgh
  EH3 8YJ

  Please ensure you have supplied the following with your form:

  1. Declaration signed, details completed and cheque enclosed (if applicable).
  2. Original bank/building society statement or a cancelled cheque if account is not being opened by personal cheque.
  3. Completed Direct Debit mandate.
  4. Email address details completed for Internet Banking.

• How do I operate this account?

  Once your account is open and Scottish Widows has received your initial deposit they will send you an information pack and operating instructions. You can operate your account by Internet Banking.

  The Internet Banking service offers a convenient way for you to manage your account 24 hours a day, 7 days a week. Please note, Internet Banking cannot be accessed or operated by Powers of Attorney or Third Party Mandate holders.

  Scottish Widows staff are available to deal with any queries you may have relating to Internet Banking or your E-Cash ISA between 8am and 9pm weekdays, with the exception of Wednesday when they are open between 10am and 9pm. Telephone 0845 845 0829 (calls at local rate). For your security Scottish Widows Bank will require you to verify your identity when you access this service.

• How do I make deposits?

  After your initial deposit, which can be a personal cheque or transfer from an existing Scottish Widows Bank account, you can add money to your account by:

  • A cheque drawn on a current account nominated in your application form - cheques from accounts not in your name are not permitted and building society cheques must be stamped and signed by the issuing branch to confirm that they are from an account held in your name.
  • Regular or occasional Direct Debit payments from your main current account - to do this you must first complete the Direct Debit mandate included in the application form. Provided cleared funds are available in your current account, Scottish Widows can collect the money by Direct Debit and the funds will be credited to your cash ISA within three working days.

  The methods above are the only ways you can make deposits. Transfers of money into your Account via the bank money transmission system - such as bank giro credit standing order or dividend mandate - are not possible. This is because there can be delays and identification difficulties with these methods that the bank has no control over.

• Can I transfer existing Cash ISAs into the Scottish Widows E-Cash ISA?

  Yes. You can transfer some or all of the money saved in previous Cash ISAs without affecting your annual ISA investment allowance. All that is needed is for you to complete the supplementary Cash ISA Transfer Application Form and return this to Scottish Widows along with the usual E-Cash ISA Application form and your supporting documentation.

• How do I make withdrawals?

  If you want to withdraw money from your E-Cash ISA you should instruct Scottish Widows via their Internet Banking service:

  • The minimum withdrawal is £10
  • Transfers will be made free of charge if you give Scottish Widows two business days notice.
  • For your security and protection, transfers will be made via electronic funds transfer direct to your pre-advised bank or building society current account - payments cannot be made to a third party.
  • There is a limit on the amount you can deposit in your ISA each year. This means that any money you withdraw cannot be replaced.

• What are the ISA rules?

  • You can invest in two separate ISAs each tax year; a Cash ISA and a Stocks & Shares ISA.
  • The annual ISA investment allowance is £10,200. Up to £5,100 of that allowance can be saved in a Cash ISA with one provider. The remainder of the £10,200 can be invested in Stocks & Shares with either the same or a different provider. For example, you can chose to save £1,000 in a Cash ISA with one provider and £9,200 in a Stocks & Shares ISA with a different provider.
  • Note that interest paid on cash on deposit within a Stocks & Shares ISA is subject to an HMRC flat rate charge of 20%. In contrast, cash on deposit within a Cash ISA is not subject to this HMRC charge.
  • You can transfer some or all of the money saved in previous tax years from Cash ISAs to Stocks & Shares ISAs without affecting your annual ISA investment allowance.
  • You are also able to transfer money saved in the current tax year in Cash ISAs to Stocks & Shares ISAs. Such transfers must be the whole amount saved in that tax year in that Cash ISA up to the day of the transfer. Once money saved in the current tax year is transferred from a Cash ISA to a Stocks & Shares ISA it is treated as if it had been invested directly into a Stocks & Shares ISA in that tax year. You are able then to still save up to the full remaining balance of your £10,200 annual ISA investment allowance in ISAs in that tax year. Please note, Cash ISAs which have been transferred into a Stocks & Shares ISA can subsequently only be transferred to another Stocks & Shares ISA and cannot be transferred back into a Cash ISA.

• What interest rate will I receive?

  The interest rate is guaranteed to be no less than 0.25% below the Bank of England Bank Base Rate until 31st December 2012 and with a bonus of 1.50% on the interest rate for the first twelve months on the first account you open. Interest rates are variable and can change on a regular basis. As at 1st June 2009, the gross rate (including bonus) of the Scottish Widows E-Cash ISA is 2.10% AER, but please telephone for the latest rates.

• How often is interest paid?

  Interest is calculated on a daily basis from the day funds are cleared. It is applied twice a year on 1st April and 1st October or yearly on 1st April, without tax deducted.

• Are there any specific terms and conditions unique to this account?

  The Scottish Widows Internet Banking service offers a convenient way for you to manage your account 24 hours a day, seven days a week. Separate Terms and Conditions exist for this service. The first time you log in you will need to accept these Terms and Conditions before you can access your Scottish Widows Bank account(s) online.

• Will I receive regular, printed statements?

  Statements will be produced by Scottish Widows twice yearly - on 6th April and 6th October.

• How secure is my money?

  Within the Lloyds Banking Group, Scottish Widows Bank plc, Lloyds TSB Bank plc and Lloyds TSB Scotland plc are separately authorised by the FSA, meaning all are individually covered by the Financial Services Compensation Scheme, and customers can claim for deposits held with each firm. Compensation could therefore be claimed up to the limit of £50,000 per person, per authorised institution. Customers with joint accounts are eligible to claim up to £100,000. Most depositors, including individuals and small firms, are covered. For more information, details can be found on the Financial Services Compensation Scheme website www.fscs.org.uk.