Savings

Individual Savings Accounts (ISAs) were introduced by the Government to encourage more people to save for the future. To help with this, no tax is charged on the interest earned in an ISA, making them a very effective way to make your money grow.

ISAs are designed to give you more choice, which is why there are two types:

Cash ISAs

A Cash ISA allows you to save money in a simple savings account.

The Britannia Cash ISA is our most flexible tax-free savings account, so you can make deposits whenever you have some money to spare. You can save up to £3,600 in a Cash ISA in each tax year.

There are no account charges and you have instant access to your money should you need it. However, before taking funds out of your account, it's worth remembering that withdrawals can't be replaced. For example, if you make the maximum £3,600 investment during the current tax year and then decide to take out £1,000, you won't be able to pay that money back in later on during that year because you will have already reached your annual £3,600 limit.

Stocks and Shares ISAs

A Stocks and Shares ISA allows you to put money into a stock market linked investment, such as unit trusts.

If you have more than £3,600 to invest, it could be worth considering a Stocks and Shares ISA.

The value of investments in Stocks & Shares ISAs and the income from them may fall as well as rise and is not guaranteed. You may lose part or all of your investment.

How much can you invest?

Your total annual ISA allowance is £7,200. Up to £3,600 of this can be in a cash ISA, and the remaining amount can be put into a Stocks and Shares ISA.

However, if you invest less than £3,600 in a Cash ISA you can invest more in a Stocks and Shares ISA providing your total investment is not more than £7,200 in each tax year.

The table below shows this:

	Maxi ISA

	Element		In each Tax Year up to:
	Stakeholder (Cash ISA)		£3,600
	Stocks and Shares		£3,600* (up to £7,200 if you only invest this element)*
	Maximum total each year		£7,200

		*If you choose to invest less than the maximum in a Cash ISA, you may invest more into a Stocks and Shares ISA.

Stakeholder standards and how our Cash ISAs meet them

Stakeholder standards have been introduced by the Government to show which ISAs meet their suggested guidelines and to make it easier for you to compare ISAs.

In summary, stakeholder ISAs give you:

• Instant access to your money
• An interest rate which is guaranteed not to fall more than 1% below the Bank of England Base Rate, subject to an excluded period - please see product Terms and Conditions for full details
• A minimum investment limit of just £1
• No account charges.

However, Stakeholder standards do not replace the need for advice, nor do they provide a guarantee of performance, so a Stakeholder ISA may not necessarily be the most suitable option for you.

How will interest be paid?

A tax year runs from 6 April to 5 April the following year and interest is paid directly into your account after we close for business on 5th April each year.

We'll send you a statement giving you details of interest paid, so you know just where you stand.

If you change your mind

These things happen, but there's no need to worry. Just let us know in writing within 14 days of opening your account and we'll close or transfer it. We will return your money to you as soon as possible. There are no penalties and during this period your savings will earn interest as normal. You can either visit your local branch or write to us at Dept C033, Britannia Building Society, Britannia House, Leek, Staffordshire Moorlands, ST13 5RG.

Provided you do this within 14 days, HM Revenue and Customs rules will allow you to open another Cash ISA Stocks and Shares ISA in the same tax year in which you opened your account.

If you decide that you want to close your account, please bear in mind that if you paid in cash, we cannot return it through the post. Also, if you call into a branch and the amount you require in cash is greater than £500, you will need to give us two days working notice.