Who are Aldermore Group?
Aldermore are a UK bank who provide personal and business finance products to retail customers. They offer financial services to their customers ranging from ISA accounts, to mortgages, to business loans and more.
Founded in 2009, Aldermore were acquired by the South African banking conglomerate First Rand in March 2018, having previously been listed on the FTSE 250.
Aldermore provide ISA accounts for personal investors in the form of Cash ISAs.
What is an ISA account?
An ISA account is a savings account that shelters your money from the following taxes:
- Capital Gains Tax
- Income tax on dividends
- Income tax on interest
Aldermore ISAs are Cash ISAs, so they only produce interest and not investment growth or dividends.
If you hold a non-ISA savings account that generates interest, you usually have to pay tax on the interest you receive and declare it to HMRC if you earn over the annual tax-free threshold.
However, in an ISA, you never need to worry about tax on your savings.
There is a limit to how much you can put into an ISA each tax year, and for the current year, it’s £20,000.
What types of Cash ISAs do Aldermore offer?
Aldermore’s Cash ISAs vary based on the accessibility of each account.
There are two main types of Cash ISA accounts that Aldermore offer, variable-rate ISAs and fixed-rate ISAs.
Aldermore’s fixed-rate Cash ISAs:
Fixed-rate ISAs provide a guaranteed interest rate over a specified term of 1-5 years.
The longer term you commit to, the higher interest rates you’ll get.
However, you’re discouraged from withdrawing within the term of your ISA, and you’ll lose a portion of the interest you’ve earned if you do so.
Aldermore’s variable-rate Cash ISAs:
If you want an ISA with more flexibility of access, then you can invest in a variable-rate Cash ISA.
Aldermore’s Notice Cash ISA requires you to give 30 days' notice before withdrawing, but you can then withdraw without charge and without losing your interest.
You get lower interest rates and the rates aren’t fixed or guaranteed, but you aren’t charged if you end up needing to take some money out.
Are Aldermore’s Cash ISAs Flexible ISAs?
All of Aldermore’s Cash ISAs are Flexi-ISAs. This means if you do end up withdrawing, you don’t lose your ISA allowance.
- You contribute £20,000 to an Aldermore Cash ISA
- Within the same tax year, you urgently need some funds and make a £5,000 withdrawal
- Later in the same tax year, you find yourself with £5,000 ready to put back into your ISA
- A non-flexible ISA would not allow any further contributions, as you’ve already used your full £20,000 allowance at the beginning of the year
- However, Aldermore’s Flexi-ISA allows you to keep your allowance if you withdraw, so in this case, you can still add your £5,000 back in
How do I open an Aldermore ISA?
The best way to open an Aldermore Cash ISA is online.
There are a few requirements you must meet before you open an account:
- You must be at least 18
- You must be a UK resident
- You must have read and understood the T&Cs
- You must have a UK bank account from which to make your bank transfer contributions into your ISA
You’ll also need to have your personal details to hand, like your name, date of birth, address and NI number.
You’ll also need your bank account details to make your contribution. Specifically, your sort code and account number.
Can I withdraw from an Aldermore Cash ISA?
You can withdraw from an Aldermore Cash ISA; however, you may need to wait out your notice period, or face your interest being void if you have a fixed-rate Cash ISA.
Make sure you understand the terms of your ISA account before you invest so that you’re comfortable with your withdrawal options.
Can I transfer my old ISAs to an Aldermore ISA?
If you have previous years’ ISA accounts that you want to move to an Aldermore ISA, you can transfer them over.
To do this:
- Check if there are any transfer charges or penalties with your old ISA provider
- Complete an ISA transfer form with Aldermore
- Aldermore will then complete your ISA transfer for you
Remember – you can’t transfer your ISA yourself by just withdrawing your existing ISA and contributing the money to a new ISA.
This will involve your existing ISA funds losing their ISA status, which means when you contribute the money to your new ISA it will use up your allowance.
If you transfer your ISA with a transfer form and follow the above steps, your ISA transfer will not form part of your allowance. This allows you to transfer as many ISAs as you want in each tax year.