Cash ISA Discussion/Question 3 January 2004 at 8:49PM edited 30 November -1 at 12:00AM in ISAs & Tax-free Savings 182 replies 29.1K views

MSE_Martin

This thread relates to the Cash ISA article. !To read it click here


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System

If an individual has a ISA allowance of £7000 per year, can I put the whole £7000 into either 1 or 2 cash ISAs?

lisyloo

You can only have 1 cash ISA per tax year and you can only put £3K into a cash ISA (per individual).

System

Can you allow any interest to accumulate from year to year in a mini cash ISA. For example if you earn £120 tax free interest on the £3000 maximum investment at the end of year 1 giving a total of £3120, can you invest another £3000 in year 2 which will effectively mean you then have £6120 earning tax free interest. Hope I haven't confused you all!!! ???

walnut_2

Hi Duncan

Yes, the £3k maximum annual investment excludes any interest you will have gained. The £3k is all you are allowed to physically pay in! ;D

walnut_2

OK, just when I thought I had these cash ISA's sussed....

Can I have more than one cash ISA account (each opened in SEPARATE years) and therefore pay in £3k max per account or is that £3k is all I'm allowed to save regardless of how many accounts I have?

I opened one in 2002-3 and have now paid in my maximum £3k allowance. Can I open another one in 2003-4 and start paying into that?

Many thanks
:-/

isasmurf

You can invest £3,000 into one Cash ISA per year. So, the ISA that you opened in 02-03, you could have paid £3,000 into that ISA in 02-03, and a further £3,000 into it this year.

If you have put money in to that account this year, then you'll have to wait until 04-05 before you can open another one.

System

I am new to this mini cash ISA business and need some advice.

Can I invest £3000 now (Jan 2004) and then add another £3000 in April 2004?

Galstonian

Yes, assuming government limits remain the same, £3000 per tax year in a mini cash ISA.

Dannyboy_4

Does anyone know why there is a credit check to open a mini cash ISA savings account?


I was looking to open one with IF (intelligent finance), via IF.com, but reading through the terms and conditions they do a credit check and credit scoring on all applicants.


Why is that? I just want to open an ISA cash savings account with them, not interested in loans, mortgages, etc.


I understand about verification of identity, but this does seem a bit strange.


Cheers,


Danny.

markedgar

Presumably Danny, for ant-fraud/money laundering reasons only.

I can't imagine this being a problem for most people.

Mark E