What is an ISA?
An ISA is a tax efficient way of saving or investing as all income and capital gains arising within an ISA are exempt from any personal liability to UK Income Tax and Capital Gains Tax. For the Danske Cash ISA this simply means no interest is deducted from the interest you receive.
There are four types of ISA:
- Stocks and Shares
- Innovative finance
Each tax year, you can subscribe the full limit to one type of ISA or split the limit between a cash ISA, a stocks and shares ISA, an innovative finance ISA and a Lifetime ISA as you wish subject to the Lifetime ISA payment limit of £4,000.These can be held with the same or different ISA providers.
We offer the Danske Cash ISA which is an instant access savings account that pays interest tax-free.
How do I open a Danske Cash ISA?
You can open a Danske Cash ISA in any Danske Bank branch. You can request an appointment by completing our online Book an appointment form and someone will contact you to arrange a time which is suitable for you or you can telephone us on 0800 660033*.
Alternatively, if you are 18 or over, you can ask for an appointment to apply by telephone.
You will need to provide your National Insurance number when you apply.
Please note that if you wish to open the account to transfer in an existing ISA from another provider you will need to do this in a Danske Bank branch.
Refer to question 'How do I transfer an existing ISA to a Danske Cash ISA?' for details.
*Important call information
Does Danske Bank offer a stocks and shares ISA?
We no longer offer the Danske Stocks and Shares ISA.
Does Danske Bank offer an innovative finance ISA?
No, Danske Bank does not offer an innovative finance ISA.
Does Danske Bank offer a Lifetime ISA?
No, Danske Bank does not offer a Lifetime ISA.
Does Danske Bank offer junior ISAs for children?
Yes. We offer the Danske Junior Cash ISA which allows you to save tax-free for your child's future. For more information visit our Danske Junior Cash ISA page or contact your Branch.
How much can you save to an ISA?
A payment to an ISA is called a subscription. HM Revenue & Customs (HMRC) set annual limits on the amount you can subscribe.
The ISA subscription limit for the current tax year (6 April 2017 to 5 April 2018) is £20,000.
Each tax year you can subscribe the full limit to one type of ISA or split the limit in any way across each type of ISA. Please note you can only subscribe to one cash ISA each tax year, this includes the Help to Buy ISA which is a type of cash ISA. Danske Bank does not currently offer a Help-to-Buy ISA, Innovative Finance ISA or Lifetime ISA.
The table below details some examples of how you can use your £20,000 2017-2018 ISA allowance.
Can I subscribe to an ISA?
If you are aged 16 or over and resident in the United Kingdom for tax purposes or a Crown employee serving overseas (or married to, or in a civil partnership with, a Crown employee working overseas) you are eligible to subscribe to a cash ISA.
You can only subscribe to one cash ISA each tax year, this includes the Help to Buy ISA which is a type of cash ISA. Danske Bank does not currently offer a Help-to-Buy ISA.
Can a parent put money into an ISA for their child?
Children aged 16 or 17 can have an adult cash ISA. If you give your child money to subscribe to an adult ISA, and the total investment income arising on all gifts from you, not just in the adult ISA, exceeds £100 in any tax year, all income will be treated as part of your income for that tax year for Income Tax purposes. You should report that income to your Tax Office.
What happens if I move abroad?
If you cease to be UK resident you can still keep your Danske Cash ISA open and earn interest tax-free but you will not be eligible to subscribe to the account. If you change your address to outside of the UK we may block your account for further deposits until you confirm you are still eligible to subscribe. If we do this we will write to you to advise.
If you are unsure of your residency status you should refer to the Statutory Residence guidance at www.hmrc.gov.uk/international/rdr3.pdf
How can I subscribe to a Danske Cash ISA?
You can make subscriptions at any time, subject to the applicable annual ISA subscription limit, by cheque, cash or electronic transfer from another account (including through our eBanking Service).
You can also set up regular saving by Standing Order and increase or decrease regular monthly savings at any time without any charges. You can also stop your savings, and restart them, at any time without penalty.
If you stop making subscriptions to your Danske Cash ISA for one full tax year you will be required to sign a new Account Agreement before you can start subscribing again.
Can I make withdrawals from the Danske Cash ISA?
Yes. You may make a withdrawal from your Danske Cash ISA, in whole or in part, at anytime.
Telephone your branch if you want to transfer funds to another account.
Call into your Branch to transfer funds to another account or withdraw cash from your Danske Cash ISA.
You may also transfer funds to another account using our eBanking Service (eBanking may be temporarily unavailable when we are carrying out routine maintenance).
Taking money out of your Danske Cash ISA will reduce the balance of your Danske Cash ISA and therefore reduce the tax savings you could be entitled to at the end of the tax year.
If you have fully subscribed to your ISA in a tax year, any amount withdrawn cannot be reinvested in the ISA until the following tax year.
Is the Danske Cash ISA a "flexible" ISA?
No. A "flexible" ISA allows the subscriber to replace, in whole or in part, cash they have withdrawn without the replacement counting towards their annual subscription limit. Cash withdrawn from the Danske Cash ISA will continue to count towards a subscriber's annual limit and therefore can only be reinvested in the ISA where the customer is able to do so within their remaining ISA subscription allowance.
Can I transfer my ISA between ISA providers?
Yes. It’s possible to transfer an ISA between ISA providers and it is also possible to transfer from one type of ISA to another. You can request the transfer of an ISA by contacting the new ISA provider who will arrange the transfer.
How do I transfer an existing ISA to a Danske Cash ISA?
You can apply to transfer an existing ISA to a Danske Cash ISA in any Danske Bank branch.You can request an appointment by completing our online Book an appointment form and someone will contact you to arrange a time which is suitable for you or you can telephone us on 0800 660033* to arrange the appointment.
*Important call information
We will pay interest on the full amount to be transferred as soon as we receive your application. This is provided that the funds are free to move and not tied up in a fixed-term or notice account.
Danske Bank follows the industry Transferring your Cash ISA guidelines which outlines a typical cash ISA to cash ISA transfer process and indicative timescales.
Transfers from a cash ISA should be completed within 15 business days and transfers from a stocks and shares ISA within 26 business days.
You will need to provide your National Insurance number and details of your existing ISA when you apply.
Can I change my mind about my Danske Cash ISA Account (cancel the Account) after I have opened it?
Yes. You will have a right to cancel your Danske Cash ISA within 14 days of the day after the date that the Account was opened, or the date you receive the terms and conditions, whichever is later. You can cancel the agreement by contacting your branch or by writing to the ISA Manager at:
Donegall Square West,
Belfast BT1 6JS.
If you are required to complete a new Account Agreement because you have made no subscriptions in the previous tax year, the same cancellation rights apply.
After you have cancelled your application you will be free to subscribe to another cash ISA in the same tax year in which the cancellation is effected as HMRC will treat the cancelled subscription as if it had never taken place.
What happens to the money in my Danske Cash ISA when I die?
When you die, the tax benefits of your ISA will cease. We will continue to deal with your account in accordance with the ISA terms until instructions are received from your legal representatives(s).
From 6 April 2015, a surviving spouse or civil partner is eligible to claim a one-off Additional Permitted Subscription (APS) allowance equal to the value of the deceased's ISA on the date of their death to invest in an ISA. This is so the surviving spouse/ civil partner will retain the tax advantages they previously shared as a couple.
The one-off allowance will be in addition to the surviving spouse or civil partner's usual annual ISA subscription allowance. This is a subscription allowance only and does not involve the transfer of actual ISA investments. The deceased's assets will be dealt with in accordance with their estate. The allowance may be claimed whether or not the surviving spouse or civil partner inherited the deceased's ISA assets.
A surviving spouse or civil partner can enquire about or claim an APS allowance by visiting any Danske Bank branch in the UK.
They will be required to sign documentation confirming marriage/ civil partnership with the deceased and that they were living together at the time of death.
Subscription of the APS allowance can be paid into a cash ISA with Danske Bank or the allowance can be transferred to another ISA provider.
All APS allowance subscriptions need to be made in branch and accompanied by an APS application. Any attempts to make an APS allowance subscription via eBanking will be treated as a subscription under a customer's normal annual ISA allowance and will be permitted or rejected in line with ISA rules.
Subscriptions must be made within 3 years of the date of death, or if later, 180 days of the completion of the administration of the estate.
A customer leaflet Obtaining additional ISA allowances gives more information on the APS allowance.