FAQs for Cash ISA Fixed Deposit Account


1. What is an ISA?

ISA is an Individual Savings Account. The interest earned on the deposit is tax free. This is up to a limit fixed by HMRC every year.


2. Which ISA can I open with SBI?

You can only open a Cash ISA fixed deposit account with us. A Cash ISA fixed deposit account is simply a tax free fixed deposit.


3. Can I apply for a Cash ISA fixed deposit account with SBI?

Yes, you can apply for an ISA if you are

  • aged 18 or over
  • resident in the UK for tax purposes, If not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or married to, or in a civil partnership with, a person who performs such duties.
  • have a permanent UK address

4. Can I invest as much as I want into a Cash ISA?

For the current tax year, 2015/16, you will be able to save up to £15,240 which can be paid into a Cash ISA, Stocks and Shares ISA or a combination of the two.


5. I am 17 years old. Can I open a Cash ISA?

The minimum age to open a Cash ISA fixed deposit account at SBI is 18 years.


6. Can I transfer my existing Cash ISA account to SBI Cash ISA Fixed Deposit Account?

Yes, you can transfer the existing ISA subscription amount from any provider to this account. If you are transferring the current year subscription, it has to be the full amount, while you can transfer any amount from the previous year ISA subscriptions.


7. Do I have to fill a separate form to transfer my existing Cash ISA to SBI Cash ISA Fixed Deposit Account?

Yes, you have to complete a Transfer Authority Form to make the transfer from another ISA provider along with the SBI Cash ISA Application form. If you wish to transfer ISA’s from different providers, you must complete an Authority Form for each transfer request separately.


8. Can I close the Cash ISA fixed deposit account before it has matured?

Withdrawal of the deposit can be made before the end of the term if 30 days’ notice is provided. However, a partial withdrawal is not allowed.

NO interest will be paid if the account is closed before the first year of anniversary. For example, if the deposit is withdrawn or transferred after 9 months, only Principal will be paid i.e. with no interest.

If the account is closed on or after the first year of anniversary, but before the end of the agreed term, interest will be paid at 1% less than the applicable rate of interest for the entire period the deposit is held with the bank. For example, if the interest rate was 2.1% AER for 3 years and if the deposit is withdrawn or transferred after 2 years, an effective interest rate of 1.1% will be paid for the entire 2 years the deposit is held with the bank


9. Can I transfer my Cash ISA to another provider?

Yes, you can transfer your ISA to another provider at the end of the fixed term.


10. Can I transfer my ISA to another provider before it has mature?

Yes, transfer of the deposit can be made before the end of the term if 30 days’ notice is provided. However, a partial transfer is not allowed.

NO interest will be paid if the account is closed before the first year of anniversary. For example, if the deposit is withdrawn or transferred after 9 months, only Principal will be paid i.e. with no interest.

If the account is closed on or after the first year of anniversary, but before the end of the agreed term, interest will be paid at 1% less than the applicable rate of interest for the entire period the deposit is held with the bank. For example, if the interest rate was 2.1% AER for 3 years and if the deposit is withdrawn or transferred after 2 years, an effective interest rate of 1.1% will be paid for the entire 2 years the deposit is held with the bank


11. What happens when my Cash ISA fixed deposit account matures?

We will inform you at least one month prior to the date of maturity of your Cash ISA fixed deposit. However, if we do not receive any instructions from you at the end of the fixed term, the total amount will be re-invested for the same term at the prevailing rate of interest.


12. Can I open the Cash ISA fixed deposit account without having any existing account with SBI?

To open the Cash ISA fixed deposit account, you will have to open a non ISA Current account or an Instant Access Savings Account with SBI.


13. How do I fund the Cash ISA fixed deposit account?

For current year subscription, the Cash ISA can be funded from you non-ISA SBI Current account or Instant Access Savings Account.

Or you can transfer an existing Cash ISA from any ISA provider to SBI, please submit a Transfer Authority Form with the SBI Cash ISA Application form to transfer from an existing ISA provider.


14. I have a joint account; can I apply for the Cash ISA fixed deposit account?

Yes, you can apply for a Cash ISA fixed deposit account in your name although you have a joint account. Please note the new ISA account will only be under a single name.


15. Can I have more than one ISA?

You can hold more than one ISA account, but you can only open and subscribe to one Cash ISA and one Stocks & Shares ISA per tax year. This could be a Cash ISA with one provider and a stocks & shares ISA with a different provider, or both with the same provider.


16. Can I open a Stocks and Shares ISA with SBI?

At the moment we do not offer stocks and shares ISAs. We also do not allow transfer of Stocks & Shares ISA to our Cash ISA fixed deposit account.


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