ISAs made easy

Normal savings accounts and investments are all very well. However, the fact is that the tax man takes a slice of your interest or investment growth.

But it doesn't have to be like that. With Individual Savings Accounts (ISAs), you don't pay tax on the interest on savings - or the capital gains on investments. That's because an ISA shelters your money from tax - and gives your finances a helping hand.

ISAs are flexible too. You can use one to protect a savings account (in a cash ISA) or an investment (in a stocks and shares ISA) from tax.

If all this sounds too good to be true, then you’re right. The government sets a limit on how much you can put in each tax year – up to £10,680 for a stocks and shares ISA which can include up to £5,340 in a cash ISA.

Make the most of tax-efficient saving and investment - start your RBS ISA right now. Because if you don't use your ISA allowance in each tax year, it's gone forever.

• Cash ISAs

At its simplest, a cash ISA is just a regular savings account - one where you don't pay tax on the interest. This really helps your money to grow - and gives your savings a great head start.

You can put a maximum of £5,340 into a cash ISA in the current tax year.

Do you have a cash ISA with another bank or building society? It's easy to transfer this to a cash or stocks and shares ISA with RBS.

Transfer the funds and you still retain all your tax benefits. But if you withdraw money from a cash ISA, you lose the tax benefits on the funds you've withdrawn.

The only way you could reinvest into a cash ISA is to take advantage of the ISA allowance that you haven't used.

• Stocks and shares ISAs

With the potential for higher levels of growth than cash ISAs, stocks and shares ISAs could be a good way of getting involved in stock market investment.

However, remember that the value of stocks and shares can fall as well as rise - and you may not get back the full amount of your original investment.

• Medium-to-long term investment
• How much can you invest?
• A choice of managed funds
• Tracker funds
• Select your own stocks and shares

Although you can access the money in a stocks and shares ISA whenever you like, it's designed to give you tax-efficient returns over years, not months. It should be considered as a medium to longer term investment.

You can put up to £10,680 into a stocks and shares ISA this tax year.

If you’ve put money into a Cash ISA during this tax year, the most you can invest in a stocks and shares ISA is your annual limit, minus the sum you’ve put into your Cash ISA.

Put your investment in the hands of world-class fund managers, with our Expert Managed Solutions. Choose from:

• Cautious Growth Fund
• Income Fund
• Balanced Growth Fund
• Adventurous Growth Fund

An expert firm looks at the asset allocation for each fund - such as cash, government bonds and equities. And we employ another firm to keep a close eye on the performance of each fund manager.

Expert Managed Solutions are provided by RBS Collective Investment Funds Limited.

Tracker funds work by investing in an index of shares - such as the FTSE® 100.

This means your investment will rise or fall in line with the index; the fund doesn't attempt to second-guess the market.

Tracker funds don't employ people to actively decide that to buy and what to sell. This helps to keep fees low.

• FTSE® 100 Tracker Fund

Looking for a more hands-on approach? You can invest up to £10,680 and choose from a range of over 1,000 discounted funds. Or you can select your own shares. The choice is yours.

Find out more about the Direct Trader Self-Select ISA.

• Common questions

• Who can have an ISA?
• How much can I put in an ISA?
• Is my money safe in an ISA?
• How many cash ISAs can I have?
• When does the tax year start and finish?
• Can I get access to my money?

A. Anyone who is resident and ordinarily resident in the UK, as well as being 16 or over can have a cash ISA. For a stocks and shares ISA, you need to be 18 or over.

A. You can put up to £10,680 a year in an ISA, subject to a certain criteria.

You can use your tax-efficient savings allowance in two ways.

You can invest up to £5,340 into a Cash ISA, plus the remainder into one of our stocks and shares ISAs (minimum investment may apply).

Or you can invest your full annual allowance in one of our stocks and shares ISAs (minimum investment may apply).

A. Cash ISAs are similar to deposit accounts, which means the money you deposit has the same level of protection as a deposit account. What's more, you won't pay tax on your savings, so they will grow faster.

If you decide to invest in one of our stocks and shares ISAs, you not only have a tax-efficient way to save but you also have the opportunity to benefit from the potential growth of the stockmarket.

However, the value of equities can fall as well as rise and you may not get back the full amount of your original investment.

A. You can only have one cash ISA and one stocks and shares ISA per tax year.

If you already have a cash ISA with another provider you can choose to transfer your cash ISA to RBS .

A. The tax year runs from 6 April until 5 April the following year.

A. Yes, you have access to your money at any time, whichever ISA you choose.

However, with an Expert Managed Solutions Stocks and shares ISA you should be prepared to invest for five years or more and you must withdraw amounts of at least £500 and leave at least £500 in your investment.

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