NS&I’s Direct ISA welcomes deposits up to £15,000 from 1 July 2014

From 1 July 2014, savers will be able to take advantage of the government’s increase to ISA limits announced in the March Budget. On 1 July all ISAs will become New ISAs (NISAs), allowing savers to invest up to £15,000.

This applies to all customers who already hold NS&I’s Direct ISA or those who haven’t already opened a cash ISA this tax year. Savers will now be able to invest up to £15,000 within the current tax year in NS&I’s Direct ISA, increased from the current subscription limit of £5,940. NS&I’s Direct ISA is a cash ISA – NS&I does not offer stocks and shares ISAs.

Julian Hynd, Retail Director, NS&I, said:

“Our Direct ISA is a straightforward way to save with no bonus rate and no withdrawal penalties. We’re delighted that savers now have the chance to invest up to £15,000 in our Direct ISA.”

Changes at a glance

  • NS&I will be raising the upper limit of the Direct ISA to £15,000 in the 2014-15 tax year from 1 July 2014
  • NS&I only offers a cash ISA – if customers use the £15,000 allowance solely in cash, they will not be able to open a stocks and shares NISA in the same tax year
  • If a NS&I customer has already contributed to another cash ISA in the 2014-15 tax year, they will not be able to open a NS&I Direct ISA in the same year
  • NS&I customers can manage their Direct ISA online at nsandi.com or by phone
  • NS&I’s Direct ISA does not allow transfers in from other providers – this will remain the case after the increase of the subscription limit to £15,000
  • NS&I’s Direct ISA currently pays 1.50% AER tax-free (variable). The minimum investment is £1.

Notes to Editors

  1. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products. All products offer 100% security, because NS&I is backed by HM Treasury