Penrith Mountain Rescue Team Vehicle Gets Kitted Out Thanks To £3,000 Newcastle Building Society

Release Date: 26 February

What is a Cash ISA?

Just like a savings account, a Cash ISA (Individual Savings Account) is a safe, secure way to store your money. The only difference is that any interest you earn on your savings is tax-free.

What are the benefits of an ISA?

There are many reasons to opt for a Cash ISA over alternative savings accounts. Not the least of these, is that they’re a great way of saving for your future. Other benefits include:

  • Currently, all basic rate taxpayers can earn £1,000 of tax-free savings interest per year, under the Personal Savings Allowance (PSA). However, there is no guarantee that this won’t change in the future. With ISAs, you’re guaranteed your savings will always be tax-free. Investing your allowance each year means you can grow your savings without having to pay any tax.
  • If you were to opt for an alternative regular savers account and savings interest rates increased, the money you’d saved may tip you over the Personal Savings Allowance limit.
  • Some types of Cash ISA come with the added benefit of government boosting. For example, the 25% government bonuses offered with Help to Buy ISAs and Lifetime ISAs. 

Are ISAs tax-free?

Yes, with a Cash ISA you can rest assured your savings are not only tax-free, but safe from changing regulations.

The only time when a Cash ISA isn’t exempt from tax is if you are aged 16 or 17 years old, and the money in your account is a gift from a parent. If this is the case, your parents may have to pay tax if parental settlement rules apply.

Cash ISA rules

  • To be eligible for a Cash ISA, you must be aged 16 or over and a UK resident. The only exception to this is in the case of Lifetime ISAs, that require you to be 18 years old
  • You can only open one Cash ISA per year
  • You have a single ISA allowance each year, which you can divide between a Cash ISA, a stocks and shares ISA, an Innovative Finance ISA and/or a Lifetime ISA. With a Lifetime ISA, the maximum allowance is £4,000 each year, meaning you have up to £16,000 to split between the other types

How much can I put in an ISA?

The total amount you can put into a Cash ISA for the 18/19 tax year is £20,000. This is known as the ISA allowance and is available to every person over 16 in the UK. You have the choice of using up the maximum allowance in one account, or splitting between the different types of ISA products.

Any interest your ISA earns doesn’t count towards your Personal Savings Allowance.

When is the ISA deadline?

The ISA deadline is midnight on 5th April each year; this is the end of the tax year. Any unused allowance doesn’t roll over into the new tax year, so you should try to make the most of your allowance before the deadline comes around. For more information on the ISA deadline, refer to our ISA deadline guide.

What are the different types of Cash ISA?

There are a number of different Cash ISAs available to help you achieve your savings goals. Whether you’re saving for your first home or setting up a nest egg for your golden years, there’s an option to suit you.

Fixed Rate ISAs

A Fixed Rate ISA pays a guaranteed amount of interest for a set period of time, from six months to five years. Though withdrawals are permitted, they’re subject to penalties. Consequently, a Fixed Rate ISA is better suited to those who won’t need immediate access to their savings.

Help to Buy ISAs

A Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit on your first home. To qualify, you can’t own a property anywhere in the world.

You can save up to £200 a month in a Help to Buy ISA, and they come with the added bonus of government contributions. In this case, your savings could be boosted by 25%. The minimum government bonus is £400, so you will have to have saved at least £1,600 to qualify for a government bonus.Please note, Help to Buy ISAs are due to be withdrawn in November 2019.

Lifetime ISAs

A Lifetime ISA is a tax-free savings account that also offers a government bonus of 25% on top of the money you put in, up to a maximum of £1,000 a year. With a Lifetime ISA, you can deposit as much as £4,000 per year until the age of 50. Lifetime ISAs can only be opened and funded by those aged 18 to 39.

Junior ISAs

Junior ISAs are tax-efficient ways of saving for your little one’s future. You must be 16 or over and a UK resident to open a Junior ISA on behalf of a child, or be a child aged 16 to 18 to open one for yourself. The Junior ISA allowance for 2019/20 is £4,368.

Find everything you need to know about Junior ISAs here.

Refer to our Cash ISA page to discover the full range of ISAs available with Newcastle Building Society.

How many ISAs can I have?

You can have multiple ISAs at one time, but you can only open or pay into one of each type of ISA using your £20,000 allowance. 

Though you can only open one Cash ISA each tax year, there’s no limit to the number of ISA transfers you can make, should you spot a better interest rate with another provider. However, with Newcastle Building Society, you can open multiple cash ISAs using our CustomISA service. You can find more about that here.

What happens if I take money out of my ISA?

Withdrawals are permitted from most ISAs. However, if you make a withdrawal from a Fixed Rate ISA, you will be subject to a penalty in the form of a loss of interest on your savings.

If you think you will need access to your savings quickly, then you may be best suited to an ISA that doesn’t penalise withdrawals.

In relation to the Lifetime ISA a penalty of 25% of the withdrawal amount will be deducted unless the funds are being used for either:

  • Buying your first house (the account must have been held for a minimum 12 months)
  • You reach the age of 60
  • You are diagnosed with a terminal illness and have less than 12 months to live

Can I transfer my ISA to another provider?

You are permitted to unlimited transfers each tax year. However, you should always check that your new provider accepts transfers, as not all banks and building societies are obliged to do so

Avoid withdrawing money from your ISA yourself, as your savings may lose their tax-free status!

There are a number of reasons you may want to transfer to a new provider. For example, if you’ve spotted better rates elsewhere. Read our complete guide to the ISA transfer process for more information.

Can I inherit an ISA?

If your spouse or civil partner passes away, you will be eligible to receive an Inheritance ISA Allowance. Read more information about inheritance tax allowance in our helpful inheritance tax allowance guide.

Applying for a Cash ISA with Newcastle Building Society

If you'd like to apply for a Cash ISA at Newcastle Building Society, the process is really simple. We also accept ISA transfers, including Lifetime ISAs. To get the ball rolling, simply browse our Cash ISA product range or contact us.​

A new Penrith Mountain Rescue Team vehicle is getting fully kitted out thanks to a four-figure grant awarded through the local Newcastle Building Society branch.

The 40-strong volunteer team is responsible for carrying out rescues across 2,500 square kilometres of land, an area which includes much of north Cumbria and the Lake District as well as parts of south west Scotland.

As part of extending the resources available to support the services it provides, it has recently taken delivery of a people carrier that has been converted to make it suitable for patient transport.

After being nominated by David Houldridge, a customer at Newcastle Building Society's Market Square branch in Penrith, a £3,000 grant has been given by the Society to pay for a range of equipment that will be used inside the vehicle.

This includes a new defibrillator, breathing apparatus and medical gases, communications equipment, locks to hold patient stretchers in place during transportation, roof rails, snow chains and a variety of other first aid kit

The funding has been provided by the Newcastle Building Society Community Fund at the Community Foundation, which has been set up to provide grants to charities and community groups that are located in or around the communities served by the Society's branch network, and put forward for support by its customers.

Penrith Mountain Rescue Team provides a 24/7 search and rescue service to the public every day of the year and works across an area which includes Haweswater, Wigton, Ullswater, Alston and Kielder, and is celebrating its 60th anniversary this year.

The team carried out well over 60 rescues during 2018, with each one undertaken by whichever of its volunteers are available when the call for help comes in.

The Mountain Rescue Team gets no public funding, and needs to raise at least £25,000 every year to meet its annual running costs.

Kevin Dowding, chairperson of Penrith Mountain Rescue Team, says: “We've just had one of our busiest ever years, and demand is continuing to grow for our help, which is in turn driving us towards increasing the range of resources we can access to effect rescues.

"Adding this new vehicle to our fleet means we can get more people to and from rescue areas, and gives us greater flexibility in how we respond to each situation, but it obviously needs equipment to go in it that will allow us to provide the medical and logistical help that's needed.

"Being wholly self-financed means we have a lot of different costs to cover, so getting this sort of generous support from Newcastle Building Society means we can direct our existing resources towards other areas.

"We're all set to celebrate 60 years of lifesaving work across the region in 2019 and plan to use the anniversary as a platform for building a sustainable future by recruiting more volunteers from across the area."

Since its launch in 2016, Newcastle Building Society’s Community Fund has contributed over £265,000 in grants to projects across the Society's North East and Cumbria heartland, and is so far estimated to have had a positive impact on more than 129,000 people.

Grant applications for a maximum of £3,000 can be made in any Society branch or via the newcastle.co.uk website by customers who wish to support their local communities.  There are larger grants of up to £50,000 also available to assist groups in improving or maintaining community buildings.

Matt Taylor, manager at Newcastle Building Society's Penrith branch, adds: “The commitment, bravery and dedication of the volunteers who make up the Penrith Mountain Rescue Team is second to none, and their expertise makes a crucial difference in many challenging and dangerous situations.

“Having a positive impact on the communities in which we're based is an essential part of the Society's operations, and supporting an organisation which any of us could one day need is an ideal way to do this."

The Newcastle Building Society Community Fund is run in association with the Community Foundation Tyne & Wear and Northumberland.

For more information on the work of the Penrith Mountain Rescue Team and to find out more about the joining process, visit www.penrithmrt.org.uk