From ISA to NISA - What's Different About The New ISA?

6th June 2014

ISAs are changing into a new, simpler product as part of changes announced in the 2014 Budget.

From 1 July, the 'New ISA' (NISA) will have an annual allowance of £15,000 - the biggest ever increase to ISA limits - and all or part can be invested in cash, stocks and shares or whatever combination of the two that you choose.

What does this mean for our customers?

The ISAs we offer aren't changing – it's just the limit. From now until 30 June, you can save up to £5,940 tax free in our cash ISAs for the 2014/2015 tax year. You can also invest in a stocks and shares ISA, up to a limit of £11,800 minus any money you have put into a cash ISA.

Then from 1 July, your annual allowance will increase from £11,800 to £15,000. You can save up to a maximum of £15,000 during the 2014/2015 tax year in cash, stocks and shares, or a mixture of the two.

Why should you choose an ISA?

There are lots of different ways to save your money. An ISA is a tax efficient way to save in cash, stocks and shares or a mixture of both. As part of these changes, the government is abolishing the rule that means only half of your ISA allowance can be saved in cash. Also for the first time, savers will be able to transfer funds from stocks and shares ISAs into cash ISAs. It's a great way to build up a tax-free pot of savings.

What's next?

These changes come in to effect on 1 July. If you already have an ISA then you don't need to do anything, but remember, from the beginning of July you can put more money into your ISA, protecting up to a maximum of £15,000 from tax .

If you don't have an ISA then you can speak to one of our advisers in a branch, over the phone or online.

You can find out more about ISAs and our other savings products at www.rbs.co.uk/savings or www.natwest.com/savings