Cash ISA Discussion/Question

System

So if I had 3 Cash ISAS, opened in 04/01, 04/02, 04/03. Am I allowed to put £3k into each every year? Meaning I'll be putting in £9k a year in total?

Regards

me2

no !

its £3k per year for mini cash ISAs
(that is the total per person per year)


You cannot add to the previous ISAs opened in prior years

(the bank may tell you that you're adding to the prior year's ISA but in fact you are really utilising this year's allowance)

System

no !

its £3k per year for mini cash ISAs
(that is the total per person per year)


You cannot add to the previous ISAs opened in prior years

(the bank may tell you that you're adding to the prior year's ISA but in fact you are really utilising this year's allowance)

I hear people opening additional Cash ISAs every tax year. What's the point in that?

lisyloo

The new one may be a better rate (in this case they should transfer the old one as well).

System

The new one may be a better rate (in this case they should transfer the old one as well).

Exactly, why open another when? Just transfer it.

lisyloo

The only explanation I can offer is laziness.

Transferring an ISA should be straightforward.
Unfortunately it seems to take quite a lot of effort.
For a start it's normally difficult to work out how you do it and once you've worked that out then you may find your outgoing provider less than helpful.

Personally my limit is about £20 per year.
i.e. I won't bother moving for less than that.
It's simply not worth the hassle.

System

This question has already been asked but didn’t really get a proper answer (for me anyway!). So here goes again…

If I invested £3000 into a mini cash ISA at the start of the 2003/2004 tax year then receive interest at 4.5% (i.e. 3000*0.045=£135) on 5th April 2004 giving me £3135.

If I invest another £3000 at the start of the 2004/2005 tax year into the same ISA, will I receive interest on £6135 on 5th April 2005 (i.e. 6135*0.045=£276) giving me £6411 in my ISA?

More long term, (assuming 4.5% interest)...

Date ISA Amount Interest
6/4/03 £3000
5/4/04 £3135 3000*0.045=£135
6/4/04 £6135
5/4/05 £6411 6135*0.045=£276
6/4/05 £9411
5/4/06 £9834.50 9411*0.045=£423.50
6/4/06 £12834.50
5/4/07 £13412 12834.50*0.045=£577.55

Is this the pattern it would follow?

Galstonian

I'm not sure what you are trying to ask but broadly speaking, yes, that is how it would operate.

In reality you could receive monthly interest calculated on a daily basis, the exact mechanics will be specified by the ISA managers. All ISA's will pay compound interest (i.e. interest on interest) just like ordinary savings accounts.

Strictly speaking you are actually getting a new ISA each year, you could go to a different provider or open a different type of ISA each year. You can only have one ISA per year and the limits are of course subject to change.

Does that answer your question?

mr.steve_2

Please excuse my ignorance but I'm very new to this.
I was wondering, can you put £3000 into a mini cash ISA a few days before the end of the tax year (as your first time) then put in another £3000 at the beginning of the next tax year so you have £6000 sitting in your ISA collecting interest for the duration of that tax year?

lisyloo

Yes