Newbie Cash ISA question

steveh2001

Hi Guys,

Have a question about Isas i wasnt quite clear on,

I realise that each person can invest (save) £3K of cash in an isa per year, so what happens at the end of the year? I assume that its a good idea for every tax payer to have a £3K isa each year, so you will want to renew the ISA at the end of the year. What im trying to get at is what happens to the £3K + interest at the end, can you direct it back into another bank account, or will it automatically go into another £3K isa with the interest going to another bank account?

Cheers!

lipidicman

OK, first off it's each TAX year (so April to April)

ISAs capital and interest will just stay where it is if you do nothing. The account inside the wrapper is just an ordinary savings account. The ISA wrapper is where the £3k limit comes from.

Once you are into the next tax year you either put another 3k into the same ISA (which now has £3k + £3k + interest) or you open a new ISA and leave the old one (or transfer it (DONT WITHDRAW IT))