ISA interest...

SarahNeedle1872

This is gonna sound like a silly question....

I have filled my ISA allowance for the year. My ISA int is paid on a yearly basis, but I may need to withdraw a month or two before the int is due to be paid (0% period on CCs ends). So what happens to the interest? Do I forfeit it? Or will it be paid at the end of the year anyway?

zAndy1

My guess is you will get paid the interest up to the date you withdraw it and it will be paid at the end of the year.

SarahNeedle1872

Cheers, that's what I was hoping! Obviously if I can get another 0% deal before the current one ends, I will.

Mikeyorks

If you withdraw all the funds - then the ISA will effectively close. And interest, to date, will be added to the funds you withdraw. If you leave a minimum sum in the ISA - the interest will be paid on the next anniversary.

SarahNeedle1872

Thanks Mike, I'm hoping that I can get another 0% deal so I can keep saving - I've never used my ISA allowance up before!

Mikeyorks

You'd better concentrate on that new deal then.

As we're only just over 4 months into the tax year - it means, otherwise, you can't fund another ISA until after 5.4.09

SarahNeedle1872

I worry that there may not be many/any around by then..... my 0% deals end at the beginning of March, so don't wanna have to take it out just before the deadline.... I'm hoping to have enough cash stashed in a high int saving acc to open a 09/10 ISA and use the whole allowance again.....
Would I be able to transfer money in and pay in another £3600 or am I just trying to be greedy?

Mikeyorks

SarahNeedle1872 wrote: »

Would I be able to transfer money in and pay in another £3600 or am I just trying to be greedy?

If I'm following you correctly (some funds left in this year's ISA?) ..... then. yes, you can transfer that into another ISA and contribute a further £3.6k immediately after 5th April.

But - assuming you don't clear out all the funds in the current ISA - you can just add the £3.6k into that after 5.4.09? Then - if there's better rates about, you can transfer the entity to someone else who accepts transfers. But try and avoid transfers round the March / April period - as the ISA scene is a bit fraught!

SarahNeedle1872

YOu were following correctly..... I'm just thinking way ahead of myself.... If I can get another 0% deal, I won't need to take any money out the ISA, so I could transfer the £3.6k and add in another £3.6k after 05.04.09 (assuming of course that I have that much saved!)
Re the timing.... I have been watching the Tax Haven thread with interest (went there last year, didn't bother this year!) and the whole thing seems a nightmare... I transferred to my current ISA in June, so lost a couple of months at the better rate, but it all seemed to go through really quickly. I shall just keep my eye open for a good rate!

Anyways, thanks for your help!:beer: