Inheritance ISA - Product Details

Untitled Document

Summary Box - Key Product Information

 Account Name
 Inheritance ISA
What is the interest rate?
  • 0.40% AER/Tax-free.
  • Interest is calculated on a daily basis on the balance in the account and paid annually (ending 31 March).
  • Interest is paid tax-free.

Can Monmouthshire Building Society change the interest rate?
  • Yes - the interest rate is variable, which means the interest rate can go up or down.
  • If we increase the interest rate, we will display this information in our branch/agency offices and on our website.
  • If we decrease the interest rate and you have a balance of £100 or more we will notify you by sending you a letter, email or other personal notice 14 days in advance of the change.
  • In line with our General Terms & Conditions for Savings Accounts (6.12-6.20) we may change interest rates at any time if we reasonably believe the change is needed.
What would the estimated balance be after 12 months based on £1,000 deposit?
  • £1,004.00.
  • We have worked this out assuming a £1,000 deposit is made and no further deposits or withdrawals are made during a 12 month period.
How do I open and manage my account?
  • The Inheritance ISA is only available to the spouse or civil partner of a Monmouthshire Building Society Cash ISA account holder whose death has been registered with the Society and who passed away on or after 3rd December 2014.
  • You can open and manage your account at any branch or agency office, by post or online.
  • There is no minimum investment.
  • You may add to your savings at any time within the permitted period, up to the value of your Additional Permitted Subscription.
Can I withdraw money?
    • Withdrawals can be made subject to 30 days notice or 30 days loss of interest on the amount withdrawn.

    Additional Product Information

    • Flexible ISA rules do not apply, therefore you cannot reinvest amounts withdrawn.
    • You can add to your savings at any time by cash, cheque or standing order within the permitted period, up to the value of your Additional Permitted Subscriptions.
    • The permitted period for making Additional Permitted Subscriptions ends 3 years after the date of death, or if later, 180 days after the administration of the estate is complete.
    • After the Additional Permitted Subscription Period ends, no further deposits can be made, however, withdrawals can still be made.
    • We do not accept transfers of Additional Permitted Subscriptions from other ISA managers.
    • The minimum age of the account holder is 16 years.
    • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year.
    • The Tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.                                                                                                                                                                                                         

        What is an inheritance ISA?

        On 3rd December 2014, the Treasury announced new ISA rules which mean that spouses and civil partners can now inherit their loved one’s ISA allowance thanks to the launch of the Additional Permitted Subscription. If your spouse or civil partner passed away on or after 3rd December 2014, you can increase your ISA allowance by using the Additional Permitted Subscription either by using the existing funds in the ISA account, new funds or a mixture of both.

        Even if the money in the ISA was left to somebody else, the surviving spouse or civil partner can still inherit the ISA allowance built up over time. The Additional Permitted Subscription can be deposited into our Inheritance ISA which will allow the surviving spouse or civil partner to continue to earn interest tax-free.

          How does the Inheritance ISA work?

          Your Additional Permitted Subscription will be held in an Inheritance ISA and will be equivalent to the value of the amount held in your spouse’s or civil partner’s ISAs when they passed away.

          If for example, your spouse or civil partner had £40,000 plus interest saved in their ISA when they passed away, your Additional Permitted Subscription would be £40,000 plus interest. This means that you could deposit up to £40,000 plus interest into an Inheritance ISA.

          The Additional Permitted Subscription can only be used up to 3 years after the date the customer passed away or 180 days after the completion of the administration of the estate if longer. After this date you can no longer deposit funds, however, you will continue to earn interest on the funds.

          Our Inheritance ISA is only available to the spouse or civil partner of a Monmouthshire Building Society Cash ISA account holder whose death has been registered with the Society and who passed away on or after 3rd December 2014.

            Am I eligible for a Monmouthshire Building Society Inheritance ISA?

            You will be eligible to invest the Additional Permitted Subscription into an Inheritance ISA if:

            • You are the spouse or civil partner of the account holder who held a Monmouthshire Building Society Cash ISA
            • You were living with your spouse or civil partner at the time your spouse or civil partner passed away. That is, not separated under a court order, under a deed of separation, or in circumstance where the marriage or civil partnership has broken down.
            • The subscription is being made within 3 years of the date your spouse or civil partner passed away. Or, if later, 180 days after the completion of the administration of the estate (known as the Permitted Period)
            • You are aged 16 years of age or over

            How can I open a Monmouthshire Building Society Inheritance ISA?

            You can open an account by depositing the ISA balance, or new funds up to the value of the balance of the deceased’s ISA at the time of death. This can be done by cheque or transfer from another Monmouthshire Building Society account held by the surviving spouse or civil partner (but excluding personal ISA subscriptions).

            When you apply to open an account with us, we’ll ask you for proof of your name and address, and an electronic check of your identity will be undertaken. This is required by law to verify the true identity of all new and existing customers. For full details please refer to our Proving Your Identity leaflet. Identity checks play an important part in the fight against terrorism and other criminal activities.

            To open this account please download and fill in the application form within the useful documents section of this page, located within the the top right hand corner and post to Monmouthshire Building Society, Monmouthshire House, 13 John Frost Square, Newport, NP20 1PX.

            Customers can enjoy the convenience of managing their account(s) online using our ‘My Accounts’ service. For more information and to register, please click here.

            What is the minimum investment balance for an Inheritance ISA?

            • There is no minimum investment amount.

              What is the maximum investment balance?

              • The maximum investment balance must not exceed the value held in the Monmouthshire Building Society Cash ISA at the time your spouse or civil partner passed away.

              Can I make further deposits?

              • You may add to your savings at any time within the permitted period either through a single Additional Permitted Subscription or a series of Additional Permitted Subscriptions up to 3 years after the date the deceased spouse/civil partner passed away or 180 after the completion of administration if longer.
              • All payments into the account must be made by cheque (either by post or at a branch or agency), by cash or transfer from another Monmouthshire Building Society account held by the surviving spouse or civil partner (but excluding personal ISA subscriptions). Electronic payments are not permitted.
              • You must complete the relevant declaration form each time you make an Additional Permitted Subscription which is available in branch or on the Society’s website.
              • We do not accept transfers-in of Additional Permitted Subscriptions from other ISA providers.
              • The time limit for making the Additional Permitted subscription ends 3 years after the date of death, or if later, 180 days after the administration of the estate is complete. After the time limit is passed, no further deposits are allowed but savings will still earn interest and withdrawals can still be made.
              • Payments into the account must not cause you to exceed your Additional Permitted Subscription limit.
              • Additional Permitted Subscriptions are treated as previous year’s ISA subscriptions for all ISA purposes.
              • You may not transfer your own current or previous year’s subscriptions into the Inheritance ISA.
              • You may not transfer your own current or previous year’s subscriptions into the Inheritance ISA.

                Can I make withdrawals?

                • All withdrawals are subject to 30 days notice or 30 days loss of interest on the amount withdrawn.
                • Withdrawals are subject to the limits of the branch or agency you use.
                • Details of our current withdrawal limits are displayed in branches and agencies and are available here.
                • You can also make withdrawals by electronic transfer using the ‘My Accounts’ system. Online withdrawals using the ‘My Accounts’ system are subject to further terms and conditions.

                If I withdraw funds does that count against my subscription?

                • Flexible ISA rules do not apply to this product.
                • Subscription limits are affected by withdrawals; therefore you cannot re-invest amounts withdrawn.
                • Cash ISA transfers to another ISA provider are not classed as withdrawals, and must be arranged by your new ISA provider on your behalf.

                What is the interest rate?

                For details of our the current interest rates, please see our separate Interest Rates Page.

                How is the interest calculated and when is it paid?

                • Interest is variable and calculated on a daily basis. Provided the account complies with the 'Regulations' all interest arising will be free of UK taxation. The taxation of ISAs can be changed at any time without notice by the Government. 
                • Interest can be credited to your account or paid annually into a suitable bank/building society account or suitable Monmouthshire Building Society account following the close of business on 31 March each year. 

                Can I transfer my Monmouthshire Building Society Inheritance ISA to another ISA provider?

                • Yes – you may transfer the funds invested in the Inheritance ISA to another provider. Cash ISA transfers from one ISA provider to another are not classed as withdrawals, and must be arranged by your new ISA provider on your behalf. It is important that you do not withdraw funds that you wish to transfer yourself, as they will count towards your ISA subscription limit.

                Can I transfer-in the Additional Permitted Subscription from another ISA provider to a Monmouthshire Building Society Inheritance ISA?

                • No – transfers-in of Additional Permitted Subscriptions are not permitted.

                Can I cancel my application?

                • There is a 30 day ‘cooling off’ period if you subsequently feel that the account does not meet with your requirements. Any deposits received within this period will not count towards your Additional Permitted Subscription and will be returned with interest paid tax-free.
                • If you choose to close your Monmouthshire Building Society Inheritance ISA after the cancellation period, all deposits made into the account before closure will count towards your Additional Permitted Subscription and cannot be reinvested. If you have not used your Additional Permitted Subscription in full, then the remaining allowance can be re-invested into a new Monmouthshire Building Society Inheritance ISA, provided this is done within the permitted period.

                  Financial Services Compensation Scheme

                  We are part of the Financial Services Compensation Scheme (FSCS). Details of the scheme, and who is covered by it, are available here.

                  It is important that you read the 'General Terms & Conditions for Savings Accounts' and the account specific Terms and Conditions before deciding to open an account.

                  >> Inheritance ISA - Specific Terms and Conditions   

                  >> General Terms & Conditions for Savings Accounts

                  >> View Interest Rates

                  >> ISA Subscription Limits

                  >> Branch and Agency Withdrawal Limits

                   
                   


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