We updated our account conditions on 6 April 2016 to explain we now pay your interest gross.
On 6 April 2016 , the Government introduced a tax-free Personal Savings Allowance on the interest you earn on your savings and interest paying bank accounts. This means:
For more information, please visit www.gov.uk/hmrc/savingsallowanceInformation about the new Personal Savings Allowance on the HM Revenue & Customs website.
From 6 April 2016, some of our cash ISAs now benefit from a flexible feature.
The Government introduced a new ISA called innovative finance ISA on 6 April 2016.
The Government introduced lifetime ISAs on 6 April 2017. They allow you to save up to the lifetime ISA allowance each tax year and receive a government bonus of 25% of what you have saved. You can use some or all of the money to buy your first home, or keep it until you’re 60 – it’s up to you.
Lloyds Bank doesn’t offer this ISA however you are able to transfer in from and out to a lifetime ISA subject to product rules. If you want to transfer your Help to Buy: ISA to a lifetime ISA, special rules apply. Please ask your lifetime ISA provider for details.
No, we will pay gross interest on all of your savings and interest paying current accounts. This means that no tax will be automatically deducted from interest on your behalf.
It depends on your personal circumstances. ISAs allow you to build up a pot of money over a number years which will be tax-free.
If the amount of interest you earn on your savings accounts is above £1,000 then you may be required to pay tax whereas any interest earned in an ISA is free from tax.
Cash ISA Saver and Instant Cash ISA are fully flexible. Fixed Rate Cash ISAs are flexible, however withdrawal charges apply.
Help to Buy: ISA does not have full flexibility as this is limited by product rules. See individual product conditions for full details.
Flexibility does not apply to Junior Cash ISA.
You can replace the full amount as long as it is in the same tax year that it was withdrawn. You can also deposit up to the annual ISA allowance (less any amount invested in a stocks and shares, lifetime or innovative finance ISA).
Any previous years’ subscriptions that have been withdrawn must be replaced before you request an ISA transfer. Current year’s subscriptions can be replaced following the transfer as long as they are replaced in the same tax year that they were withdrawn. You can also deposit up to the annual ISA allowance (less any amount invested in a stocks and shares, lifetime or innovative finance ISA).
Any funds withdrawn must be replaced in the same tax year otherwise you lose the allowance and future deposits will count towards the following tax year’s allowance.