Savings FAQs

Our operating area is:

Our eSavings account is only available to internet enabled Cumberland Plus or Freedom Apprentice current account customers who live in our operating area.

An ISA is the abbreviation for Individual Savings Account that enables you to save or invest money without paying tax on the interest or on the investment returns you receive.

Each tax year, which starts on 6 April, you get a new ISA allowance. For the current tax year, the ISA allowance is £20,000.

Yes. We will normally accept the transfer of a Cash ISA from another ISA provider, subject to ISA regulations. We recommend you check with your existing provider whether their account has any restrictions on withdrawals to make transfers

Our Cash ISA is an instant access account, this means you can withdraw money if you need to. Any withdrawals you may make from our ISAs are not added back to your annual allowance meaning if you withdraw money after using your full annual ISA allowance, you will not be able to add more money to your ISA account for the rest of the tax year.

No only the account holder can make payment of any kind into a cash ISA, which can only be held in a sole name.

This is a term for any savings or investment product that is designated as an ISA and therefore means any interest you earn on your ISA will not be taxed.

There is no real difference between the two except for the tax treatment. You won’t pay or be liable for any tax on interest earned in an ISA but you may owe tax on non-ISA interest. Some banks and building societies offer the same product and interest rates regardless of whether they are an ISA or not whereas others may have different rates or specific accounts.

The Notice Account is designed for those who do not need instant access to their savings. However, if unforeseen circumstances arise you can make withdrawals without notice but will lose the equivalent of 40 days’ interest on the amount taken out.

Our Regular Savings and First Home Saver accounts can be opened in single or joint names, subject to each customer having a sole or joint Cumberland current account.

Yes but only 1 penalty free withdrawal is permitted per subscription year, otherwise any more withdrawals will trigger the reduction of the interest rate applied over the year.

You will not get the First Home Saver £250 bonus cashback, which is only payable if you take out a Cumberland mortgage. You will still receive interest provided you meet all the rest of the terms & conditions. However we offer a Regular Savings account for those who want to save monthly but not with the express purpose of home purchase.

Children’s Accounts, excluding Cash Junior ISAs, are not tax free. If a parent gifts money to a child, and it produces more than £100 gross interest in a tax year, the income may be taxable depending on the parent’s personal circumstances.

Accounts opened for young savers up to 7 years of age will be opened in trust and must be operated by a responsible adult such as a parent, guardian or grandparent.