Newcastle Building Society ISA
Whether you’re looking to open a new ISA or to transfer in you might be wondering if a Newcastle Building Society ISA is the right choice for you. It is a good idea to check out multiple providers to try and find the top best buy choice for you. You can use the comparison table to view a selection of ISAs from different providers and click on the links to apply.
Newcastle Building Society ISA’s
The Newcastle Building Society offers a product called the ‘CustomISA’ which allows you to spread your annual ISA allowance across different types of products including: Easy access. Regular saver and Fixed term plans. Using their calculator tool to break up the total amount you wish to invest, splitting it between the available products.
Types of ISA
There are two types of ISA; Cash ISAs and Stocks & Shares ISAs which are considerably different from each other. You’re allowed to open up to one of each type of ISA each tax year. Whether you have only one kind of ISA or both your maximum ISA allowance stays the same, so if you open both kinds in a tax year you will need to break up your allowance between the two Individual Savings Accounts.
- Cash ISA – These accounts work much like a normal savings account, the chief difference being that interest accrued on this account is paid tax-free up to your allowance. providers may offer different savings options with their Cash ISAs such as Instant access, Easy Access and Fixed Rate. Accounts that offer less access to your savings during their term tend to offer better interest rates, however this will vary with provider.
- Stocks & Shares ISA – Work as a tax-efficient wrapper, you can put your money into in order to invest in other products such as government and corporate bonds, stocks and funds. These are capital at risk products so you could get back less than you originally invested if the value of your investments’ decrease. Some of this type of ISA require you to directly manage your investments into different stocks and shares, others work as a collective investment scheme where your money in pooled with other investors into a fund. This type of product is called ‘tax-efficient’ as you are still taxed on dividend payments but they have tax advantages when it comes to Capital Gains Tax and Income Tax.
ISA Transfers
All providers of ISAs must allow you to transfer to other providers, as long as you are not locked in to a fixed account, however they can impose an interest penalty for doing so. ISA providers also do not have to allow you to transfer in.
As you are allowed to transfer it may be worth regularly checking to see if any other providers offer a better deal, however if your current arrangements mean that you would incur a penalty you should first work out if it would negate any potential benefit offered by switching.
