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Inheritance ISA

Summary Box

Account name Inheritance ISA
What is the interest rate?
Tier AER/tax-free (variable)
£1+ 0.25%
£10,000+ 0.50%

Interest is calculated daily and added to this account annually in March.

Can Santander change the interest rate?

 

Yes, the rate can go up or down e.g. in response to industry and market conditions. If the rate goes down, we’ll let you know around 14 days before the rate changes.
What would the estimated balance be after 12 months based on a £1,000 and a £10,000 deposit?
Balance Interest earned  Balance after 12 months
£1,000  £2.50  £1,002.50
£10,000  £50.00  £10,050.00

Estimates assume the account is opened and deposit is made on 1st March and no change to interest rates.

These illustrations are only examples and don’t take into account individual circumstances.

How do I open and manage my account?

This account will enable the spouse/civil partner of a deceased Individual Savings Accounts (ISA) saver to benefit from an additional ISA allowance. Where the death of an ISA customer happens on or before 5 April 2018, individuals will be permitted to save an additional amount in an ISA, up to the value of their deceased spouse or civil partner’s ISA savings at the time of death, without this amount counting against their normal ISA subscription limit.

Where the death happens on or after 6 April 2018, individuals will be permitted to save an additional amount in an ISA, which will be the higher of:

  • the value of the deceased's ISA at the date of their death; or
  • the value of the deceased's ISA at the point that the ISA wrapper is removed.

If the spouse/civil partner uses their APS limit, in full or part, or transfers their APS limit to another ISA manager before the point in which the ISA wrapper is removed from the deceased’s ISA, they will no longer be eligible to receive the APS limit at the point the ISA wrapper is removed, if this is higher.

To open the account you must be:

  • a UK resident, account can only be held in single name;
  • aged 16 or over; and
  • you must be a spouse/civil partner of an Individual Savings Accounts (ISA) saver who died on or after 3rd December 2014. You must have been living with the deceased at the time of their death, not separated under an order of a court or a deed of separation or not separated in circumstances where the separation was likely to become permanent.

Opening

  • Visit any Santander branch.

APS allowance transfers
If your deceased spouse had an ISA with another ISA provider you can transfer in the additional allowance from that ISA provider, you must complete the APS transfer authority form after you have opened your Inheritance ISA. If you have already made an APS deposit with that provider, you will then not be able to transfer the remaining APS allowance to another ISA provider.

The account does not accept the transfer in of existing ISA funds including APS deposits, already paid to another ISA provider.

Deposits
There is no minimum deposit required. Deposits must be made within 3 years of date of death or 180 days of the completion of the administration of the estate, whichever date is latest. For deaths between 3rd December 2014 and 5th April 2015, the time limit commences from 6th April 2015.

You can deposit up to the value of the deceased spouse or civil partner's ISA savings at the time of death.

Deposits can be made in branch or via post and must be accompanied by a completed APS Additional Permitted Subscription Eligibility Declaration Form.

Manage the account

  • Branch only.
  • A receipt or confirmation letter (certificate if applicable) will be issued after account opening.
  • Statements are issued annually in March.
Can I withdraw money?

Yes, withdrawals can be made in branch.

Any money that you withdraw yourself from this cash ISA will lose its tax-free status and if repaid back into this cash ISA, will count towards your APS allowance. If repaid back into another ISA, it will count towards your current tax years ISA limit.

We aren’t offering additional flexibility on ISAs but some providers are offering this feature. Those providers may allow you to replace funds that you have withdrawn with them without affecting the ISA limit.

Additional information

You can cancel the account within 14 days of opening and your money will be returned in full with interest. It’s not possible to cancel a transfer of an APS allowance once the transfer process is completed.

The favourable tax treatment of ISAs may change in the future. 

Subject to availability and may be withdrawn without notice. Rates and information correct as at 4 April 2018.


Please read the full product details and terms & conditions before applying. Other accounts are available; see our ISA range to find out more
 

Deposits

You can make deposits into your Inheritance ISA:
In Branch
Via Post

Deposit requests must be accompanied by a completed Additional Permitted Subscriptions Eligibility Declaration Form. Requests should be sent to the address below

ISA Team
Santander
9 Nelson Street
Bradford
BD1 5AN

Additional Permitted Subscriptions Eligibility Declaration Form.

Transferring an APS allowance from an external provider

You must complete the APS transfer Authority form and have an open Inheritance ISA.

Inheritance ISA Transfer form

If your deceased spouse had an ISA with another ISA provider you can transfer in the additional allowance from that ISA provider. If you have already made an APS subscription with that provider you will then not be able to transfer the remaining APS allowance to another ISA provider. The account does not accept the transfer in of existing ISA funds held with other ISA managers.

Once you have funded this cash ISA, you can transfer the funds held in this cash ISA, in full or part, both to another Santander cash ISA and also to another ISA provider. If you wish to transfer out funds held in your cash ISA please contact your new ISA provider who will arrange the transfer for you. Any funds paid into this cash ISA in this tax year will not count towards your current tax year limit if transferred to another ISA.

Everything you need to know before you apply

We recommend reading the information in the documents below before you apply. You may like to save or print them so you can refer to them in the future.

Inheritance ISA Key Facts Document (pdf)

General Terms & Conditions (pdf) 

To view these documents, you may need to download Adobe Reader.

Please read full product details and terms & conditions before applying.

You can apply for an Inheritance ISA if you:

  • are at least 16 years of age

  • are the spouse or civil partner of Individual Savings Accounts (ISA) savers who died on or after 3 December 2014 and were living with the deceased at the time of their death, not separated under an order of a court or a deed of separation or not separated in circumstances where the separation was likely to become permanent. 

Apply in branch
Find your nearest branch or call 0800 085 1553 to make an appointment. Lines are open 8am to 9pm Monday-Friday and 8am to 4pm Saturday. You will need to bring proof of your name and address and ID along with the details of the original account holder.

Rates and information correct as at 4 April 2018.

AER explained
AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year.

Tax Free explained
The tax free rate is the rate of interest payable where interest is exempt from income tax.
 

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