Online Bank Accounts – UK

Egg, the online bank located at the new.egg.com web address, has recently launched a new Cash ISA paying 2.50% gross pa/AER variable rate, tax free.

The product is available to new and existing Egg customers for deposits from as little as £1 up to a maximum of £3,600 per tax year.

A recent survey by Egg reveals that UK banking customers consider ease of access (via the internet and phone) as one of the most important features for a savings account. Accordingly, an Egg ISA can be set up online in minutes and customers can keep track of their savings online any time of the day or night.

Main features of Egg Cash ISA 2:

• 2.50% gross pa/AER variable rate – tax free
• Customers can deposit anything from £1 to £3,600 each tax year (a tax year runs from 6 April to 5 April the following year.)
• Customers can make a one-off deposit, regular payments or just add to it when you want to (existing ISAs cannot be transferred in)
• An account can be set up online in minutes
• Customers can keep track of it online anytime 24/7
• Interest paid annually on the anniversary of the account opening

ISA is the acronym for Individual Savings Account.

In an ISA you can save up to £7,000 each financial year, which runs from 6^th April until the 5^th April the following year.

You must be 18 years or over to open an ISA. If you are aged between 16 and 18 you can enter a Mini Cash ISA or the cash component of a Maxi ISA.

Individuals who are both resident and ordinarily resident in the UK for tax purposes  are eligible to subscribe to an ISA account.

Returns from ISA savings are free of income tax and capital gains tax, except dividends, which are subject to 10% income tax.