Variable Cash ISAs & Fixed Rate Cash ISAs

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• How much can I invest in my ISA for this Tax Year (2009/2010) If you were born on or after 6 April 1960 you can save up to £3,600 in a cash ISA with one provider and the remainder of the £7,200 allowance into a stocks and shares IS with the same or another provider each tax year. Alternatively, you can invest up to £7,200 in a stocks and shares ISA.If you were born on or before 5 April 1960, you can save up to £5,100 in a cash ISA with one provider and the remainder of the £10,200 allowance into a stocks and shares ISA with the same or another provider each tax year. Alternatively, you can invest up to £10,200 in a stocks and shares ISA.From 6 April 2010, these higher limits will apply to everyone.
• What is an ISA? ISA stands for Individual Savings Account, the government’s tax-efficient savings initiative. The special tax-efficient features of these accounts mean that there are strict limits on how much you can invest in a given tax year which runs from 6th April one year to 5th April the next.
  
• What are the benefits of ISAs? An ISA is designed to offer special tax advantages. They are a flexible way to earn a tax efficient return, allowing you to invest in cash, stocks and shares either together or with different product providers. You do not have to leave your capital untouched for a specified period in order to qualify for tax efficient interest.
  
• What tax advantages are there? All income and gains from ISA investments are exempt from UK personal income tax and capital gains tax in the hands of the investor. Interest on cash ISAs is payable without deduction of income tax at source. If you choose to invest in a Stocks and Shares ISA, the 10% tax credit attached to UK dividends can no longer be reclaimed on your behalf by the ISA manager. Information about ISAs does not have to be declared on your tax return. The favourable tax treatment for ISAs may not be maintained.
• Can I transfer an existing ISA into one of your accounts? Transfers from other institutions are accepted subject to the completion of an ISA Transfer Form. Download this form or ask your local branch or call Dunfermline Direct on 08457 33 66 88 for further details.

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