Cash ISA - Invest now

6 April 2008

Description

1. Deposits into a National Savings and Investments (formerly known as National Savings) Cash Individual Savings Account (“ISA”) are investment deposits in the National Savings Bank and are subject to the National Savings Bank Act 1971, National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764 - see paragraph 33) and the National Savings Bank (Investment Deposits) (Limits) Order 1977, as amended or re-enacted from time to time. This is a guide to the main provisions. An NS&I Cash ISA is an Individual Savings Account (ISA) for the purposes of (and is subject to) the Individual Savings Accounts Regulations 1998 (“the ISA Regulations”). Under these Regulations, an ISA must remain in the beneficial ownership of the investor and cannot be used as security for a loan.

2. In these terms and conditions:
(a)  “banking day” means a day (other than a Saturday, Sunday or bank holiday) on which banks are generally open for business in London, and, in relation to the processing of a payment, any other place of receipt;
(b) “Director” means the Director of Savings;
(c)  “NS&I” means National Savings and Investments operating through its Durham office or such other office as the Director may specify;
(d)  “post office” means a branch of Post Office Ltd in the UK (this does not include post offices in the Channel Islands and the Isle of Man).

Interest and tax

3. All deposits accepted (see paragraph 16) will earn interest at variable rates. Notice of changes to rates will be given in the London, Edinburgh and Belfast Gazettes. Details of current rates are set out in our Interest Rates leaflet available at post offices and from NS&I.

4. Subject to a minimum balance of £1, interest is earned for each day on which funds are invested. This includes the day of deposit (see paragraph 15) but not the day of withdrawal (see paragraphs 22 and 24). Interest is earned at 1/365th of the annual rate for each day (or 1/366th for each day in a calendar leap year).

5. Interest will be credited annually after close of business on 5 April or next banking day.

6. In accordance with the ISA Regulations, interest is free of UK Income Tax and Capital Gains Tax does not apply. The account ceases to qualify for tax-free interest on the death of the holder and interest earned following the date of death is liable to tax.

Who may open an NS&I Cash ISA

7. An NS&I Cash ISA can only be opened by an individual aged 16 years or over who is resident and ordinarily resident in the United Kingdom for tax purposes. Apart from deputies on behalf of persons who lack mental capacity, accounts cannot be opened by someone on behalf of another person.

8. An ISA may not be held in trust or jointly with another person or opened by a person under a legal disability as a result of mental incapacity or as an undischarged bankrupt.

9. NS&I should be informed if an account holder ceases to be resident in the United Kingdom for tax purposes. No further deposits can be made into the NS&I Cash ISA until the investor meets the residence qualification again.

10. The applicant must not subscribe to another cash ISA in the same tax year (ie a period of 12 months starting on 6 April).

11. NS&I will notify the account holder if by reason of any failure to satisfy the provisions of the HM Revenue & Customs ISA Regulations the ISA has, or will, become void.

12. An application to open an NS&I Cash ISA can be made via the internet, by telephone or by post to NS&I; or in person at any post office which carries out NS&I business. In all cases, an application to open an account is subject to acceptance by the Director. Where you apply at a post office, acceptance can only occur when the application is subsequently processed by NS&I. Where you apply via the internet or by telephone you must confirm your application by signing and returning a confirmation form we will send to you by post. In accepting the terms and conditions you are confirming that you are aware that your identity and address will be checked as detailed in the NS&I Cash ISA brochure. We may also write to you requesting documentary evidence of your identity and address. The form and/or letter requesting evidence of identity will specify the time within which the signed form and/or evidence must be returned to NS&I. If the form and/or evidence is not received at NS&I within the specified time the Director will not be able to process your application. We will let you know if this is the case.

Deposits

13. The minimum investment to open an account is £10. An account may be opened for any amount above this minimum subject to the maximum subscription limits (see paragraph 18). The initial deposit to open the account must be made either by personal cheque (including a building society branch cheque or bankers draft) drawn on a bank or building society account held by the applicant, or if opening via the internet or by telephone, by debit card in the applicant’s name. If opening at a post office payment can be made by cash, cheque or debit card.

14. Subsequent deposits, for a minimum of £10, may be made by cheque sent to NS&I; debit card, cash or cheque at a post office; cash or cheque using the bank giro credit system at a bank or building society; debit card over the telephone; electronic funds transfer; or by standing order.

15. The date of deposit by cheque sent by post will be the date the cheque is received at NS&I. Debit card payments made via the internet or by telephone will be dated the day the debit card details are received at NS&I. Deposits at a post office will be dated the day the deposit is made. Deposits by bank giro credit, electronic funds transfer or standing order will be dated the date funds are received in the Director’s account at the Bank of England.

16. Deposits into an NS&I Cash ISA can be accepted by the Director during the tax year ending 5 April 2009. It is the Director’s intention to accept deposits during subsequent tax years, but the Director reserves the right to stop accepting such deposits in future tax years. If this is the case, we will let you know in writing.

17. In accordance with the provisions of the ISA Regulations, if you do not subscribe to your cash ISA for a whole tax year or longer, you will be required to sign a fresh declaration before any further subscriptions can be added.

Subscription limit

18. The subscription limit set by HM Revenue & Customs for cash ISAs is £3,600 each tax year until further notice. Note that the limit is on total subscriptions (ie total deposits). Sums withdrawn can only be re-deposited if they do not breach the subscription limit.

19. If deposits into your cash ISA exceed the subscription limit set by HM Revenue & Customs, the Director will return the excess amount either by electronic transfer or by crossed warrant payable to the account holder.

20. The addition of interest each year will not count towards the maximum subscription limit.

Withdrawals

21. Funds are only available for withdrawal after your payment has cleared. The time taken for payments to clear is detailed in the NS&I Cash ISA brochure. Withdrawals may be made by application in writing to NS&I or by telephone using the authorised telephone procedure (see paragraphs 27 to 31). Payment will be made by electronic transfer (direct credit) or by crossed warrant and can only be payable to the account holder.

Payment by electronic transfer

22. Payment may be made by electronic transfer to a bank or building society account held in the ISA holder’s name as specified in the withdrawal instructions or in the application to register for the telephone service. NS&I intends to use the Bankers’ Automated Clearing Service (BACS) for this purpose, but reserves the right to use a different means of electronic transfer. NS&I will normally initiate the electronic transfer within three banking days of receiving your instruction. The date of withdrawal will be taken to be the date on which, in the normal course, the requested amount would be credited to the specified account following initiation of the electronic transfer. In the case of BACs, this is normally two banking days after NS&I initiates the transfer.

23. Where an electronic transfer is initiated properly NS&I will not be liable for:

(a)  any failure or delay of the receiving bank or building society in crediting the specified account; or

(b)  any failure or delay in any part of the electronic transfer process which is beyond its direct control; including any failure which occurs because the specified account is incapable of receiving an electronic transfer.

Payment by crossed warrant

24. Where payment is requested by crossed warrant, it will be sent to the holder at their address or directly to a nominated bank or building society for credit to an account in their name. The date of withdrawal will be taken to be the date on the warrant.

Payment in cash

25. Applications may also be made to have withdrawals, up to a maximum of £300 in any one day, paid in cash at a post office. A payment advice will be sent to the holder at their address. The payment advice should be presented at a post office for cash payment to be made. Evidence of identity must be produced at the time of payment.

 26. NS&I will send you a statement every six months showing all transactions for the previous half year ending on the 5th April and 5th October. The statement for the half year ending on 5th April will include details of the interest added to the NS&I Cash ISA. NS&I reserves the right to alter the number of statements upon giving written notice to the account holder.

Telephone service

27. On application to NS&I the account holder may register to operate the account by telephone. Once registered, we will carry out available operations on the account on your instructions given by telephone. Business which may be conducted by telephone, in addition to opening the ISA, includes:

(a)  deposits using your debit card;

(b)  requests for withdrawals;

(c)  information on the account balance and the last 10 transactions;

(d)  an account valuation (the account balance plus interest accrued but not yet credited);

(e)  notifying a change of address.

28. If you register to operate the account by telephone, you will be asked to supply security data. We will then send you a temporary password. Before you can operate your NS&I Cash ISA by telephone, you will need to change this temporary password to one of your own choosing. Your chosen password must be 6, 7 or 8 characters long and can be any combination of letters and numbers. You must contact us by telephone to change the temporary password. However, the temporary password will expire after 60 days so you will need to change it before then. If you don’t change your temporary password before it expires we will issue you with a new temporary password after you next call us. The new temporary password must be changed within 60 days. If for any reason you wish to change your security information or password you should do so by telephoning NS&I. We may ask for any change to be confirmed in writing. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORDS SHOULD BE KEPT SECRET.

29. You should take reasonable precautions to prevent unauthorised use of the telephone service or unauthorised access to the account. You should not disclose any information which will give access to the account via the telephone service to any other person except to NS&I. Please note that NS&I is entitled to debit the account with any withdrawal made through the use of the telephone service if particulars of the security information were correctly given.

30. If you have reason to suspect that the security information and/or password have become known to a third party, you should immediately notify NS&I by telephone. We may ask for this to be confirmed in writing.

31. For security purposes and to maintain the highest level of service, telephone service calls will normally be recorded and may be monitored.

Transfers

32. You may transfer your NS&I Cash ISA (in accordance with the ISA Regulations) to a cash or stocks and shares ISA with a different ISA manager by contacting the ISA manager to whom you wish to transfer your ISA. The transfer will depend on the other ISA manager agreeing to the transfer. Similarly, you may transfer a cash ISA from a different ISA manager to an NS&I Cash ISA, subject to the Director accepting your application. You may also transfer a former NS&I TESSA-only ISA (now known as an NS&I T Cash ISA) to an NS&I Cash ISA. Part transfers are not permitted.

Regulations

33. As at 1 March 2007, The National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764) have been amended by the following Statutory Instruments:

Changes to these terms and conditions

34.    The Director reserves the right to amend these terms and conditions at any time. We will let you know of any change in accordance with our commitment under the Banking Code.

Law and jurisdiction

35. These terms and conditions and any agreement made on the basis of them will be governed by and interpreted in accordance with English law.

36. Subject to paragraphs 37 and 38, the courts of England are to have exclusive jurisdiction to settle any dispute (including claims for set off and counterclaims) which may arise in connection with these terms and conditions or any agreement made on the basis of them and which, subject to the Regulations, falls to be determined by a court of law.

37. Where section 16 of the Civil Jurisdiction and Judgments Act 1982 applies the relevant court of law of the relevant part of the United Kingdom shall have jurisdiction to settle any such dispute.

38. Paragraphs 36 and 37 are included for the benefit of NS&I. Accordingly NS&I retains the right to bring proceedings in any other court which has jurisdiction to whose jurisdiction the holder irrevocably submits.

Cash ISA
National Savings and Investments
Glasgow
G58 1SB

6 April 2008

To meet HM Revenue & Customs regulations on ISAs please read the following:

I apply to subscribe for a cash ISA for the tax year of 2008/09 and each subsequent year until further notice.

I declare that:

- All subscriptions made, and to be made, belong to me;
- I am 16 years of age or over;
- I have not subscribed and will not subscribe more than £7,200 in total to a cash ISA and a stocks and shares ISA in the same tax year;
- I have not subscribed and will not subscribe more than £3,600 of the overall £7,200 total to a cash ISA; and
- I have not subscribed and will not subscribe to another cash ISA in the same year that I subscribe to this cash ISA.

I am resident and ordinarily resident in the United Kingdom for tax purposes, or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom or I am married to, or in a civil partnership with, a person who performs such duties. I will inform NS&I if I cease to be so resident and ordinarily resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such duties.

I authorise NS&I to hold my cash subscriptions and any interest earned on those subscriptions.

I declare that this application has been completed to the best of my knowledge and belief.

PLEASE KEEP FOR REFERENCE