NS&I Direct ISA - Invest now

6 April 2009

Description

1 Deposits into a National Savings and Investments (formerly known as National Savings) cash Direct Individual Savings Account (“NS&I Direct ISA”) are investment deposits in the National Savings Bank and are subject to the National Savings Bank Act 1971, the National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764 - see paragraph 33) and the National Savings Bank (Investment Deposits) (Limits) Order 1977, as amended or re-enacted from time to time. This is a guide to the main provisions. Copies of UK legislation can be purchased from the TSO Parliamentary and Legal Bookshop.
 
2 An NS&I Direct ISA is an Individual Savings Account (“ISA”) for the purposes of (and is subject to) the Individual Savings Account Regulations 1998 (“the ISA Regulations”). Under these Regulations, an ISA must remain in the beneficial ownership of the account holder and cannot be used as security for a loan.
 
3 NS&I will notify the account holder if, by reason of any failure to satisfy the provisions of the HM Revenue & Customs ISA Regulations, the NS&I Direct ISA has, or will, become void.
 
4 In these terms and conditions:
(a) “banking day” means a day (other than a Saturday, Sunday or bank holiday) on which banks are generally open for business in London, and, in relation to the processing of a payment, any other place of receipt;
(b) “Director” means the Director of Savings;
(c) “NS&I” means National Savings and Investments operating through its Durham office or such other office as the Director may specify;
(d) “post office” means a branch of Post Office Ltd in the UK (this does not include post offices in the Channel Islands and the Isle of Man).

Interest and tax

5 All deposits accepted (see paragraph 17) will earn interest at a variable rate. The current rate and any subsequent changes to the interest rate will be published on the NS&I website and in our Interest Rates leaflet available at post offices and from NS&I.
 
6 Subject to a minimum balance of £1, interest is earned for each day on which funds are invested. This includes the day of deposit (see paragraph 16) but not the day of withdrawal (see paragraph 23). Interest is earned at 1/365th of the annual rate for each day (or 1/366th for each day in a calendar leap year).
 
7 Interest will be credited annually after close of business on 5 April or next banking day.
 
8 In accordance with the ISA Regulations, interest is free of UK Income Tax. Capital Gains Tax does not apply. The account ceases to qualify for tax-free interest on the death of the holder and interest earned following the date of death is liable to tax.

Who may open an NS&I Direct ISA

9 An NS&I Direct ISA can only be opened by an individual aged 16 years or over who is resident and ordinarily resident in the United Kingdom for tax purposes. Apart from deputies on behalf of persons who lack mental capacity, accounts cannot be opened by someone on behalf of another person.
 
10 An NS&I Direct ISA may not be held in trust or jointly with another person or opened by a person under a legal disability as a result of mental incapacity or as an undischarged bankrupt.
 
11 An account holder must inform NS&I if they cease to be resident in the United Kingdom for tax purposes. No further deposits can be made into the NS&I Direct ISA until the account holder meets the residence qualification again.
 
12 An application to open an NS&I Direct ISA can be made by telephone to NS&I or via the internet. In all cases, an application to open an NS&I Direct ISA is subject to acceptance by the Director. After you have applied by telephone or via the internet you must confirm your application by signing and returning a confirmation form we will send to you by post. The form will specify the time within which the signed form must be returned to NS&I. If the form is not received at NS&I within the specified time the Director will not be able to process your application. We will let you know if this is the case.

Evidence of identity

13. In accepting the terms and conditions you are confirming that you are aware that your identity and address will be checked as detailed in the NS&I Direct ISA brochure. We may also write to you requesting documentary evidence of your identity and address. The letter requesting evidence of identity will specify the time within which the evidence must be returned to NS&I. If the evidence is not received at NS&I within the specified time the Director will not be able to process your application. We will let you know if this is the case.

Deposits

14.The minimum investment to open an NS&I Direct ISA is £100. An account may be opened for any amount above this minimum subject to the maximum subscription limit (see paragraph 19). The initial deposit to open the NS&I Direct ISA may be made by telephone or via the internet, using a debit card in the applicant’s name.

15 Subsequent deposits, for a minimum of £50, may be made by debit card (either by telephone or via the internet) or electronic funds transfer. The minimum deposit by standing order is £50. All subsequent deposits are subject to the subscription limit (see paragraph 19) and to acceptance by the Director (see paragraph 17).
 
16 Debit card deposits made by telephone or via the internet will be dated the day the debit card details are received at NS&I. Deposits by electronic funds transfer or standing order will be dated the date funds are received in the Director’s account at the Bank of England.
 
17 Deposits into an NS&I Direct ISA can be accepted by the Director during the tax year ending 5 April 2010. It is the Director’s intention to accept deposits during subsequent tax years, but the Director reserves the right to stop accepting such deposits in future tax years. If this is the case we will let you know in writing.
 
18 In accordance with the provisions of the ISA Regulations, if you do not subscribe to your NS&I Direct ISA for a whole tax year or longer, you will be required to sign a fresh declaration before any further subscriptions can be added.

Subscription limit

19 The subscription limit set by HM Revenue & Customs for cash ISAs is £3,600 each tax year until further notice. Note that the limit is on total subscriptions (ie total deposits). Sums withdrawn can only be re-deposited if they do not breach the subscription limit.
 
20 If deposits into your NS&I Direct ISA exceed the subscription limit set by HM Revenue & Customs, the Director will return the excess amount by electronic transfer to the account from which the debit card deposit was made or electronic funds transfer was initiated.
 
21 The addition of interest each year will not count towards the maximum subscription limit. 

Withdrawals

22 The minimum amount for withdrawals is £50. Funds are only available for withdrawal after your payment has cleared. The time taken for payments to clear is detailed in the NS&I Direct ISA brochure (see page 5). Payments can only be banked on a banking day – see paragraph 4(a). Withdrawals may be made by telephone or via the internet using the authorised procedures (see paragraphs 26 to 30). Payment will be made by electronic transfer (direct credit) and can only be made to the account holder. You will be asked to provide details of an account suitable to receive electronic transfers when you apply to open an NS&I Direct ISA. 

Payment by electronic transfer

23 Payment will only be made by electronic transfer to a bank or building society account held in the NS&I Direct ISA holder’s name. NS&I intends to use the Bankers’ Automated Clearing Service (BACS) for this purpose, but reserves the right to use a different means of electronic transfer. NS&I will normally initiate the electronic transfer within three banking days of receiving your instruction. The date of withdrawal will be taken to be the date on which, in the normal course, the requested amount would be credited to the specified account following initiation of the electronic transfer. In the case of BACS this is normally two banking days after NS&I initiates the transfer.
 
24 Where an electronic transfer is initiated correctly NS&I will not be liable for:
(a) any failure or delay of the receiving bank or building society in crediting the specified account; or
(b) any failure or delay in any part of the electronic transfer process which is beyond its direct control; including any failure which occurs because the specified account is incapable of receiving an electronic transfer.

Account statements

25 NS&I will send you a statement annually showing all transactions for the previous year ending on the 5 April. The statement will include details of the interest added to the NS&I Direct ISA. NS&I reserves the right to alter the number of statements upon giving written notice to the account holder.

Telephone/internet service

26 When applying to open an NS&I Direct ISA, you must register to operate the account by telephone and/or via the internet. Once registered, you can operate the account both by telephone and via the internet. We will then carry out available operations on the account on your instruction.
 
27 If you open your NS&I Direct ISA by telephone you will be asked to supply security data. We will then send you a temporary password. Before you can operate your NS&I Direct ISA by telephone, you will need to change this temporary password to one of your own choosing. Your chosen password must be 6, 7 or 8 characters long and can be any combination of letters and numbers. You must contact us by telephone to change the temporary password. However, the temporary password will expire after 60 days so you will need to change it before then. If you don’t change your temporary password before it expires we will issue you with a new temporary password after you next call us. The new temporary password must be changed within 60 days. If for any reason you wish to change your security information or password you should do so by telephoning NS&I. We may ask for any change to be confirmed in writing. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORD SHOULD BE KEPT SECRET.
 
28 If, instead, you open your NS&I Direct ISA via the internet you will be required as part of your application to supply a password and other security information as requested by NS&I. We will use this information to verify the identity of the caller when requesting a telephone transaction or accessing the NS&I Direct ISA via the internet. If for any reason you wish to change your security information or password you can do so via the internet or by telephoning NS&I. NS&I may ask for any change to be confirmed in writing. AS WITH ALL SECURITY INFORMATION, PASSWORDS SHOULD BE KEPT SECRET.
 
29 You should take reasonable precautions to prevent unauthorised use of the telephone service or unauthorised internet access to the NS&I Direct ISA. You should not disclose any information which will give access to the NS&I Direct ISA to any other person except to NS&I. Please note that NS&I is entitled to debit the NS&I Direct ISA with any withdrawal made through the use of the telephone service (or internet service when available) if particulars of the security information were correctly given.
 
30 If you have reason to suspect that the security information and/or password have become known to a third party, you should immediately notify NS&I by telephone. We may ask for this to be confirmed in writing. 

Transfers

31 You may transfer your NS&I Direct ISA (in accordance with the ISA Regulations) to a cash ISA or a stocks and shares ISA with a different ISA manager by contacting the ISA manager to whom you wish to transfer your ISA. The transfer will depend on the other ISA manager agreeing to the transfer. Part transfers of current year’s subscriptions are not permitted. Transfers into an NS&I Direct ISA from another ISA manager are not permitted.
 
32 You may transfer your NS&I Cash ISA or NS&I T Cash ISA (formerly known as an NS&I TESSA-only ISA) to an NS&I Direct ISA. Part transfers are not permitted.

Regulations

33 As at 1 April 2009, The National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764) have been amended by the following Statutory Instruments:

Changes to these terms and conditions

34 The Director reserves the right to amend these terms and conditions at any time. We will let you know of any change in accordance with our commitment under the Banking Code.

Law and jurisdiction

35 These terms and conditions and any agreement made on the basis of them will be governed by and interpreted in accordance with English law.
 
36 Subject to paragraphs 37 and 38, the courts of England are to have exclusive jurisdiction to settle any dispute (including claims for set off and counterclaims) which may arise in connection with these terms and conditions or any agreement made on the basis of them and which, subject to the Regulations, falls to be determined by a court of law.
 
37 Where section 16 of the Civil Jurisdiction and Judgments Act 1982 applies the relevant court of law of the relevant part of the United Kingdom shall have jurisdiction to settle any such dispute.
 
38 Paragraphs 36 and 37 are included for the benefit of NS&I. Accordingly NS&I retains the right to bring proceedings in any other court which has jurisdiction to whose jurisdiction the holder irrevocably submits.

Direct ISA
National Savings and Investments
Glasgow
G58 1SB

6 April 2009

PLEASE KEEP FOR REFERENCE