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Common Sense.
Speed. Clarity.
Birmingham Bank ISA is a great way of saving tax free – as with any ISA interest income is tax-free.
If you’re looking to make the most of your tax-free limit and improve the return on your savings, we have a range of ISA products for you to choose from. You’ll be hard pushed to find a better rate anywhere else.
Our rates are available here…
At Birmingham Bank we want to make sure you have all the information you need before agreeing to a product. So, while you need to read and understand the Terms and Conditions of each product the ‘ISAs Explained’ information and list of frequently asked questions (FAQs) below provides some further detail you may find useful.
Individual Savings Accounts (ISAs) were introduced by the Government on 6 April 1999, replacing Personal Equity Plans (PEPs) and Tax Exempt Special Savings Account (TESSAs).
The main difference between an ISA and any other savings account is that it offers tax-free interest payments whether the consumer is a taxpayer or not and regardless of the amount earned.
There are 4 types of ISA:
• Cash ISAs
• Stocks and Shares ISAs
• Innovative Finance ISAs, and
• Lifetime ISAs.
Savers aged 16 to 18 can subscribe to a Cash ISA, but the minimum age for any other form of investment within an ISA is 18.
Birmingham Bank only offers Cash ISAs and only accepts subscriptions from investors aged 18 or over.
Tax is not payable on interest earned on cash deposits and no tax is payable on any investment income from other investments within an ISA.
Information about the interest, income or gains made on an ISA does not need to be included on tax returns.
ISA savings can be held in Cash, Stocks and Shares or Innovative Finance ISAs in any combination of amounts up to the current limit of £20,000 per person in any one tax year. Investors cannot subscribe to two (or more) Cash ISAs, two (or more) Stocks and Shares ISAs, two (or more) Innovative finance ISAs, or two or more lifetime ISAs in the same tax year. If you put the maximum annual contribution of £20,000 into a Birmingham Bank ISA you cannot invest in any other type of ISA in the same tax year.
There are also limits about how much you can invest in Junior, Help to Buy and Lifetime ISAs.
Stocks and Shares ISAs can be transferred to Cash ISAs as well as the other way around.
It is possible to withdraw and replace money from your Cash ISA, and from the cash element of a Stocks and Shares ISA without it counting towards the annual ISA subscription limit, as long as the repayment is made in the same tax year as the withdrawal.
Account holders can transfer savings between Stocks and Shares ISAs and Cash ISAs and are able to transfer their existing ISAs to another provider at any time subject to the agreed terms and conditions of their ISA product.
If an investor dies, their ISA becomes a ‘continuing account of a deceased investor’ or a ‘continuing ISA’ for short.
No money can be paid into it from this point, but it will continue to benefit from the tax advantages of an ISA, so growth will remain tax free. Its status as a continuing ISA lasts until either the administration of the estate is complete, the ISA is closed, or three years have passed since death, whichever is sooner.
In certain circumstances the deceased person’s ISA allowance can be transferred to the surviving spouse or civil partner. This is known as the Additional Permitted Subscription (APS).
The Junior ISA (JISA) is exclusively for under 18s who are resident in the UK. The allowance for the 2022/23 tax year is £9,000. The allowance can be split between a Cash JISA and a Stocks and Shares JISA, allowing a child to have two accounts.
These are a type of Cash ISA exclusively for those saving for a deposit for their first homes. Savers are permitted to save up to £200 a month and the government will add £50 for every £200 paid, up to a maximum bonus of £3,000 on £12,000 of savings. The bonus will be paid to the saver only when they come to buy a home. Accounts are limited to one per person and can be opened for a period of four years.
The Lifetime ISA (LISA) is only available to those who were aged under 40 in April 2017. Individuals will be able to open a LISA from the age of 18 until they turn 40. The maximum investment is £4,000 a year and the Government will provide a 25% bonus on those contributions payable every month.
As the investment is intended for use in conjunction with buying a home and/or providing for retirement, there are limitations on when and how money can be withdrawn.
An Innovative Finance ISA (also known as an IFISA) is an ISA that contains peer-to-peer loans. It is available to anyone over the age of 18.
This kind of lending matches investors with borrowers who did not want to, or could not get, a traditional bank loan. These are usually individuals, businesses or property developers.
The borrower will offer a rate of interest when paying back the money invested.
Generally, the higher the interest rate, the higher the investment risk – and investors are not guaranteed to get all their money back.
Our rates are available here…
Yes, there are different interest rates that are applied depending on the term of the ISA you sign up for.
Half yearly on 31st March and 30th September.
We will inform you about any changes to the interest rate (but we will not change it during a fixed rate period) or changes to any other terms of the account by giving you at least 14 days’ notice in writing and this can be done by letter, email or in any other way agreeable to the authorised account holder.
Full details are outlined on the application form, but if you are over 18 years old you can apply.
The minimum amount required to open a Birmingham Bank standard Cash ISA is £100 and £2,500 into a Fixed Rate Cash ISA, and the minimum transaction thereafter is £50.
You may only contribute to one Birmingham Bank ISA in any one tax year up to a maximum of £20,000. If you contribute to another ISA elsewhere, this amount will be reduced. Our ‘ISAs explained’ information gives you more information on how this limit works, but you may wish to take advice if you are still unsure.
If you subscribe to a fixed rate ISA, no withdrawals are permitted within the fixed rate period. For our standard Cash ISA, withdrawals are subject to a one month’s notice period.
Rates are fixed for the agreed number of years from the date of opening the account. Thereafter the account will become a standard Birmingham Bank Cash ISA with a variable interest rate.
You can get in touch in writing, by phone or by email please see our contact page for details.
Key Product Information – Here is some important information about our 1 Year Fixed Rate Cash ISA to help you decide whether this account is right for you. You should read this sheet carefully together with the full Cash ISA Terms and Conditions.
Account Name – Birmingham Bank 1 Year Fixed Rate Cash ISA
Interest Rates (AERs) – See latest rate sheet
Annual Interest – See latest rate sheet
Rates are fixed for 1 year from the date of opening the account ‘the fixed term’. Thereafter the account will become a standard Birmingham Bank Cash ISA (with variable interest rate).
Additional contributions – You may add to your Fixed Rate Cash ISA during the fixed term provided that your total subscriptions for the Tax year do not exceed the annual ISA allowance. The fixed rate period will remain unaltered. ie. It will remain as 1 year from the date of opening the account.
Maturity – your options ‐ One month before the fixed rate period ends, we will write to you to let you know whether we have a new fixed rate offer and the terms. We will also advise you of the current variable Cash ISA rate. At that stage we will ask for your written instruction for the maturity proceeds. If we have no instructions the account will automatically transfer to the standard Cash ISA terms at maturity.
Funding Limits ‐ The minimum investment or transfer into this account is £2,500 subject to the maximum ISA investment limit of £20,000 pa for the current Tax year (the period from 6 April to 5 April the following year). This amount does not include ISA subscriptions in respect of previous tax years transferred in from other providers, which are allowed regardless of the balance.
To ensure funds are accepted into your new ISA account we must receive all funds within 30 days from your account opening date. Any deposits received after 30 days may be returned to you. This includes any funds transferred in from existing ISAs held elsewhere, therefore please ensure that you initiate any ISA transfers in as soon as you receive your new Fixed Rate Cash ISA details. After the 30 day period you may not be able to make any additional deposits into this Fixed Rate ISA.
Tax Status ‐ Interest is paid tax free
Withdrawal arrangement ‐ No withdrawals are permitted within the fixed rate period
Interest Paid ‐ Half yearly on 31st March and 30th September
Account Operation ‐ Direct through initial completion of paperwork and liaison with Birmingham Bank’s head office at Birmingham Bank, 3 Wharfside Street, Spaces, Level 1, Mailbox, Birmingham B1 1RD
Telephone: 03330 048 048
Email: info@birminghambank.com
Birmingham Bank Limited, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Finance Services Register No. 204478)
Key Product Information – Here is some important information about our 2 Year Fixed Rate Cash ISA to help you decide whether this account is right for you. You should read this sheet carefully together with the full Cash ISA Terms and Conditions.
Account Name – Birmingham Bank 2 Year Fixed Rate Cash ISA
Interest Rates (AERs) – See latest rate sheet
Annual Interest – See latest rate sheet
Rates are fixed for 2 years from the date of opening the account ‘the fixed term’. Thereafter the account will become a standard Birmingham Bank Cash ISA (with variable interest rate).
Additional contributions – You may add to your Fixed Rate Cash ISA during the fixed term provided that your total subscriptions for the Tax year do not exceed the annual ISA allowance. The fixed rate period will remain unaltered. ie. It will remain as 2 years from the date of opening the account.
Maturity – your options ‐ One month before the fixed rate period ends we will write to you to let you know whether we have a new fixed rate offer and the terms. We will also advise you of the current variable Cash ISA rate. At that stage we will ask for your written instruction for the maturity proceeds. If we have no instructions the account will automatically transfer to the standard Cash ISA terms at maturity.
Funding Limits ‐ The minimum investment or transfer into this account is £2,500 subject to the maximum ISA investment limit of £20,000 pa for the current Tax year (the period from 6 April to 5 April the following year). This amount does not include ISA subscriptions in respect of previous tax years transferred in from other providers, which are allowed regardless of the balance.
To ensure funds are accepted into your new ISA account we must receive all funds within 30 days from your account opening date. Any deposits received after 30 days may be returned to you. This includes any funds transferred in from existing ISAs held elsewhere, therefore please ensure that you initiate any ISA transfers in as soon as you receive your new Fixed Rate Cash ISA details. After the 30 day period you may not be able to make any additional deposits into this Fixed Rate ISA.
Tax Status ‐ Interest is paid tax free
Withdrawal arrangement ‐ No withdrawals are permitted within the fixed rate period
Interest Paid ‐ Half yearly on 31st March and 30th September
Account Operation ‐ Direct through initial completion of paperwork and liaison with Birmingham Bank’s head office at Birmingham Bank, 3 Wharfside Street, Spaces, Level 1, Mailbox, Birmingham B1 1RD
Telephone: 03330 048 048
Email: info@birminghambank.com
Birmingham Bank Limited, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Finance Services Register No. 204478)
Key Product Information – Here is some important information about our 3 Year Fixed Rate Cash ISA to help you decide whether this account is right for you. You should read this sheet carefully together with the full Cash ISA Terms and Conditions.
Account Name – Birmingham Bank 3 Year Fixed Rate Cash ISA
Interest Rates (AERs) – See latest rate sheet
Annual Interest – See latest rate sheet
Rates are fixed for 3 years from the date of opening the account ‘the fixed term’. Thereafter the account will become a standard Birmingham Bank Cash ISA (with variable interest rate).
Additional contributions – You may add to your Fixed Rate Cash ISA during the fixed term provided that your total subscriptions for the Tax year do not exceed the annual ISA allowance. The fixed rate period will remain unaltered. ie. It will remain as 3 years from the date of opening the account.
Maturity – your options – One month before the fixed rate period ends we will write to you to let you know whether we have a new fixed rate offer and the terms. We will also advise you of the current variable Cash ISA rate. At that stage we will ask for your written instruction for the maturity proceeds. If we have no instructions the account will automatically transfer to the standard Cash ISA terms at maturity.
Funding Limits – The minimum investment or transfer into this account is £2,500 subject to the maximum ISA investment limit of £20,000 pa for the current Tax year (the period from 6 April to 5 April the following year). This amount does not include ISA subscriptions in respect of previous tax years transferred in from other providers, which are allowed regardless of the balance.
To ensure funds are accepted into your new ISA account we must receive all funds within 30 days from your account opening date. Any deposits received after 30 days may be returned to you. This includes any funds transferred in from existing ISAs held elsewhere, therefore please ensure that you initiate any ISA transfers in as soon as you receive your new Fixed Rate Cash ISA details. After the 30 day period you may not be able to make any additional deposits into this Fixed Rate ISA.
Tax Status – Interest is paid tax free
Withdrawal arrangement – No withdrawals are permitted within the fixed rate period
Interest Paid – Half yearly on 31st March and 30th September
Account Operation ‐ Direct through initial completion of paperwork and liaison with Birmingham Bank’s head office at Birmingham Bank, 3 Wharfside Street, Spaces, Level 1, Mailbox, Birmingham B1 1RD
Telephone: 03330 048 048
Email: info@birminghambank.com
Birmingham Bank Limited, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Finance Services Register No. 204478)
We are currently updating our full Terms and Conditions and these will be available shortly.
If you have any questions, please contact us by:
Email at: info@birminghambank.com or
Telephone on 03330 048 048