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ISA £3000 interest question
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bingobango_3
Posts: 138 Forumite
If you have £3000 in an Isa, then get the interest at the end of the tax year, say for simplicity, £100, you then have £3100. If you then pay £3000 into the ISA 1st April, you then have £6100 in the account. Is this correct or should there only be a max of £6000 in there in the second year?
thanks!
thanks!
0
Comments
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That is absolutely correct if you have the interest paid to your ISA account. And what is more, in the second year, you will earn interest on the interest earned in the first year - this is called compounded interest. Happy saving!!!Before doing something... do nothing0
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Yeah lindabea is spot on. The £3000 limit is only on what you can PAY IN each year. It does not count interest as part of the £3000.0
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great, thanks! :beer:0
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