Online Bank Accounts – UK

Standard Life Bank plc (standardlife.co.uk) is currently offering a Cash ISA personal savings account with an interest rate of 2.65% variable pa/AER.

According to law, from 6th October 2009 you can save up to £5,100 per tax year in a Cash ISA and pay no tax on your interest if you were born on or before 5th April 1960.

If you were born after 5th April 1960, you can save up to £3,600 in this tax year in a Cash ISA and pay no tax on your interest, increasing to £5,100 from 6th April 2010.

ISA stands for Individual Savings Account.

A savings account of this type, called cash ISA,  is shielded from financial taxation for a capital of up to £3,600 in a tax year. Therefore, within this figure, you don’t pay tax on the interest on savings.

In a stocks and shares ISA, the no-tax limit is increased to £7,200. So, up to this sum, you don’t pay tax on the capital gains on investments.