Compare Principality ISAs

Who are Principality Building Society?

Principality Building Society are the largest building society in Wales.

The building society’s history dates back to 1860, and today they provide customers with a range of financial services online, by phone, by post and in branch.

Their financial products include mortgages, savings accounts and insurance products. They offer a variety of Cash ISA accounts within their savings accounts range which provide investors with a tax-efficient way to save.

What is an ISA account?

An ISA is a type of tax-free savings account available to investors in the UK.

You are allowed to save up to £20,000 in ISAs in the current tax year, and all of your investment profits are 100% free from tax.

Your ISA allowance refreshes each year so you can keep topping up over time, and your savings are always sheltered from the following taxes:

Income tax – in an ISA, you don’t pay income tax on interest or dividends.

Capital gains tax – in an ISA, you don’t pay capital gains tax on the growth of your investments.

What are the different types of ISA accounts?

The main two types of ISA accounts are Cash ISAs and Stocks and Shares ISAs.

Cash ISAs are solely for cash savings that earn interest, whereas Stocks and Shares ISAs invest in the stock market.

Cash ISA Basics

1. Earn an interest rate on your cash savings
2. Either fixed or variable interest rates are available depending on how much access you have for withdrawals
3. Cash ISA savings cannot go down in value
4. You could be charged for withdrawing if you take money out before the end of a fixed term ISA

Stocks and Shares ISA Basics

1. Invest in the stock market through funds, shares, ready-made portfolios and other investment types
2. Build a portfolio yourself or invest in a professionally managed portfolio
3. Your investments can go up and down in value, so you could lose money
4. You pay annual charges to any fund managers you invest with, along with to your Stocks and Shares ISA provider
5. Potential for higher returns compared to Cash ISA savings, but you can also lose money

What type of ISA is a Principality ISA?

Principality do not currently offer a Stocks and Shares ISA but do provide a range of Cash ISAs to choose from.

Each Cash ISA varies based on the interest rate they provide, whether you’re allowed to access your account for withdrawals, and how much you need to invest to open the account.

The two main types of Cash ISAs are Fixed-rate ISAs and Variable-rate ISAs (also known as instant-access ISAs).

Principality’s fixed-rate Cash ISAs:

1. The longer the fixed term you commit to, the better ISA rates you’ll get
2. You can open an account with a minimum deposit of £500, or by transferring in an existing ISA
3. You lose a portion of your interest if you take money out before the end of the fixed term

Principality’s variable-rate Cash ISAs:

1. Generally lower interest rates compared to fixed-rate ISAs
2. You have greater access for withdrawals, though this may still be capped at certain amounts
3. You can open an account with a minimum deposit of £1

Can I transfer my existing ISA into a Principality Building Society ISA?

Instead of making a cash deposit to open your ISA, you can also transfer your existing ISAs into a Principality ISA to start investing.

ISA Transfer Key Points:

1. ISA transfers don’t count towards your annual allowance, so you can transfer as much as you like and also add up to £20,000 of new money
2. Make sure to check with your current ISA provider whether you’ll be charged a fee for transferring away
3. To transfer your ISA, complete an ISA transfer form with Principality Building Society
4. Principality will complete your ISA transfer for you and you will be notified when it goes through

You must complete your ISA transfer using the above steps instead of just withdrawing your current ISA yourself and adding the money to your new account.

If you don’t use an ISA transfer form, when you add the money to your new ISA it will be classed as a normal contribution, so you’ll lose that portion of your annual ISA allowance.

How do I open a Principality Building Society ISA?

The quickest way to open a Principality ISA is online, but you can also open an account in your local Principality branch if you’d prefer.

You must be:

1. At least 16 years old
2. A UK resident

You also must not have opened another Cash ISA with any other provider in the current tax year as per the standard ISA rules.