What is a Lloyds ISA account?
Before we discuss the Lloyds ISA in more detail, we must understand what one is. An ISA, is an individual savings account which protects your money from taxation. The government sets an annual ISA limit at the beginning of each tax year. You can meet this limit through a cash ISA or a stocks and shares ISA. Some people opt to combine the two, though the annual ISA limit still applies.
Whether you are new to savings or have an existing savings pot which you want to make work harder, a Cash ISA should always be your first port of call as any interest you earn will be tax free. With a Cash ISA you’re also not risking your returns on the stock market (as you would on a stocks and shares ISA.) Opening a cash ISA is simple. By not paying tax on your interest earned, Lloyd’s cash ISA can make your savings go further.
Lloyds cash ISA rates allow you to earn 0.65% tax-free/AER variable on balances of £40,000 or more. If your balance was lower than £40,000, you’ll still earn 0.60% tax-free/AER variable. These rates are correct as at 11th April 2016 and are subject to change.
Taking advantage of tax-free interest is as simple as opening an ISA account with as little as £1. How often and how much you pay is up to you (as long as you don’t go over the ISA limit) and you won’t be charged for withdrawals.