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Common enquiries

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  • What is an ISA?
    ISA is short for ‘Individual Savings Account’ and allows you to save money without having to pay any tax on your returns. There are two types of ISA – Cash ISA and Stocks & Shares ISA. Find out more.

    When you are planning your finances if you have, say, £15,000 to save, it makes sense to consider putting the first £10,200 into ISAs which will save you tax*, and then put the rest into options outside an ISA.
  • What’s the difference between a stocks & shares ISA and a cash ISA?
    A Stocks & Shares ISA is simply a tax efficient umbrella under which you can invest in any of our unit trusts – meaning you have no further tax on your investment returns. Our unit trusts allow you to invest in a range of assets, such as shares, bonds, property and cash.

    A Cash ISA is simply a tax free savings account that offers variable or fixed rates of interest.
  • How do I choose a cash and stocks & shares ISA?
    When you choose cash ISA, you need to consider the rate of return and the access to your money offered by the product.

    With a stocks & shares ISA, you will need to choose one or more funds to invest in and take account of their different investment objectives. There are literally thousands of ISA funds offered by hundreds of providers to choose from in the UK.

    The Co-operative offers both types of ISA; cash ISA from The Co-operative Bank as well as 8 ISA funds in a stocks & shares ISA from The Co-operative Investments. Your choice(s) will depend on your attitude to risk, your savings goals, your preferences and the mix of funds you need to achieve a balanced portfolio.
  • How much can you invest in an ISA?
    The standard annual ISA investment allowance is £10,200. You can invest the full amount in a Stocks & Shares ISA or part of this amount as Cash. You can invest up to £5,100 in a Cash ISA, the remaining amount must be invested as a Stocks & Shares ISA, up to the total limit £10,200.
  • Why should I choose The Co-operative for my ISA?
    There are many reasons why The Co-operative may be an excellent choice for your ISA:
    • The Co-operative is financially strong, secure and stable
    • Both cash ISA and stocks and shares ISA are available
    • The Co-operative Investments offer 8 Unit Trust funds for your stocks and shares ISA to suit a wide range of needs and preferences; you can choose one or more funds for your ISA
  • What is The Co-operative’s view of markets?
    We think the sectors below will perform as follows:
    Cash – in our opinion short term returns will remain low due to limited number of interest rate rises
    Bonds – it is our expectation that corporate bonds, in particular, will continue to offer an attractive level of income.
    UK Equities – some volatility is predicted during 2010 as we come out of the current phase of the economic cycle, however, with valuations still at reasonable levels, the UK market continues to provide us with excellent long-term buying opportunities.
    Overseas Equities – we remain positive on US and European markets as signs of their recovery become more evident. These areas continue to benefit from being the first regions to move out of recent recession.
    Overall – we believe the improving economic recovery will continue throughout 2010 as global markets move out of recession. Equity investments are favoured due to growing investor confidence.
  • Can I afford an ISA?
    If you have money set aside in cash accounts, you can start a Co-operative Investments Stocks & Shares ISA from as little as £1,000. If you don’t have a lump sum already set aside, you can invest from as little as £50 a month into a Co-operative Investments Stocks & Shares ISA. The Co-operative Bank Cash ISA requires just £1 to open an account.

    Remember that unlike most other savings and investments, you pay no further tax* on your ISA savings, so it’s important to make sure that you use your allowance each tax year if you can. If you don’t use it, you lose it forever!
  • Can I transfer an existing ISA from another provider and retain the tax-free status?
    Yes, you can transfer your existing Cash or Stocks & Shares ISA from another ISA provider to us. We will contact your current provider and arrange the transfer.

*The information above regarding tax and ISA regulations is based on our understanding of the current position, which is subject to change. The tax treatment of investments will depend on an individual’s circumstances.