*To ensure funds paid into an Inheritance ISA count towards your inherited ISA allowance and not your current tax year ISA allowance, this account operates differently to normal ISAs. It’s important you read the guide to understand how it works.
**Once the Inheritance ISA is opened and a deposit has been made against your inherited ISA allowance, funds are considered to be existing ISA subscriptions. You’re then free to transfer your funds to another Nationwide cash ISA or an ISA with another ISA manager, providing it accepts existing ISA subscriptions.
Interest rate definitions explained:
- AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year
- Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
The treatment of your account for tax purposes will depend on your individual circumstances and you may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs’ (HMRC) website hmrc.gov.uk.
The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.
The interest rates and information in this summary box are effective from 1 January 2020.