Compare Nottingham Building Society ISAs

Who are Nottingham Building Society?

Nottingham Building Society, also known as The Nottingham, were originally founded in 1849.

They still operate branches in several counties across the UK, and also provide some of their financial services online that range from mortgages and insurance products to savings accounts.

One of the savings accounts Nottingham offer is a Cash ISA available in multiple forms, varying based on interest rates available and your flexibility for withdrawals.

What is an ISA account?

An ISA account is a type of savings account that protects your investments from UK taxes.

When you invest in a regular savings or investment account, there are two main types of tax that you’ll be subject to:

1. Income tax
2. Capital gains tax

You normally pay income tax on the interest you earn in a cash savings account and on dividends you receive from stock investments you hold.

Capital gains tax is paid on the growth of any stock investments you’ve bought when you come to sell them. If you’ve made a profit, you could pay tax on that figure.

What’s the difference between a Cash ISA and a Stocks and Shares ISA?

Cash ISAs

• Cash ISAs keep your savings as cash, and you earn a fixed or variable rate of interest on your balance
• Your savings cannot fall in value, but you may be restricted in terms of how often or how soon you can withdraw

Stocks and Shares ISAs

• Stocks and Shares ISAs give you access to invest in the stock market, tax-free
• You can create a stock portfolio yourself, or invest in a ready-made portfolio managed by professionals
• Your investments can go down as well as up in value, so you could lose money in a Stocks and Shares ISA
• You can usually withdraw as and when you please, and the process takes roughly one week

What type of ISA is a Nottingham Building Society ISA?

Nottingham Building Society offer two main types of Cash ISA accounts, and do not currently provide a Stocks and Shares ISA:

• Fixed-rate ISAs
• Variable-rate ISAs (also known as instant-access ISAs)

Fixed-rate ISAs provide you with guaranteed rate of interest for the fixed term of your investment.

Fixed interest rates are generally higher compared to instant-access ISAs, but you are penalised if you withdraw before the end of your term. Fixed interest terms range from between 1 and 5 years, and the longer your term, the higher interest rates you’ll be applicable for.

Nottingham BS’s instant-access ISAs, however, are more flexible accounts. The interest rate they provide is lower and can fluctuate, but you can withdraw whenever you like, free of charge.

How do I open a Nottingham Building Society ISA?

To open a Nottingham BS ISA, you will need to speak to your local branch, either in person or by telephone.

You must be over 16 and a UK resident to open a Nottingham Building Society ISA account.

Can I transfer my ISA into a Nottingham Building Society ISA?

You can transfer any of your old ISAs to a new or existing Nottingham Building Society ISA by completing an ISA transfer form.

Make sure you check with your previous provider whether there are any penalties or charges for transferring out.

ISA transfers do not count towards your ISA allowance. This means you can transfer as many ISAs as you wish to a new ISA in the same tax year without worrying about exceeding the £20,000 ISA contribution limit.

However, make sure you do not just withdraw your existing ISA and then add the money to your new ISA – it must be transferred with a transfer form through your new provider or your money will lose its ISA status and you might not be able to get it all back in.

What ISA rules do I need to be aware of?

Before you invest, it’s important to know some of the restrictions and limitations of ISA accounts so that you don’t accidentally break the rules.

Here are the fundamental ISA rules:

• The current annual ISA allowance is £20,000 - don’t top up more than this amount.
• You can fund both Stocks and Shares and Cash ISAs with your allowance, and split your savings between the two types.
• You're not allowed to add money to more than one Cash ISA in the same tax year, or more than one Stocks and Shares ISA in the same tax year.
• You can add money to multiple different Cash and Stocks and Shares ISAs as long as your contributions are spread across different tax years.
• Your ISA allowance does not roll over – use it or lose it.
• The ISA allowance refreshes on 6th April each year.