ISA acumulation through the years

Patsys

I am new to ISA Cash - My question is:
if I put into an ISA Cash account 3600 during 2008/9
in April 2009 I can put an extra 3600 right ?
Do they acumulate to the previous periods one ? Do I get interest on all the money ?
Do I have to always leave ONLY 3600 on that account and the rest has to be transfered to another account ?

Cheers

Baldur

Patsys wrote: »

I am new to ISA Cash - My question is:
if I put into an ISA Cash account 3600 during 2008/9
in April 2009 I can put an extra 3600 right ?

Yes - or pay the £3,600 into a different Cash ISA.

Do they acumulate to the previous periods one ? Do I get interest on all the money ?

Yes.

Do I have to always leave ONLY 3600 on that account and the rest has to be transfered to another account ?

No - unless a specific ISA product requires this.

<Edit> Many of us who have had Cash ISAs and their predecessor, the TESSA, since they started will have around £50k earning tax-free interest in various Cash ISA accounts.

obsessed_saver

Patsys wrote: »

in April 2009 I can put an extra 3600 right ?

On 6th April 2009, you may deposit a further £3600.

Just thought I should point that out in case you were thinking of going to the bank before 6th April.

Patsys

Thank you so much !

Patsys

johncolescarr

There is many discussions at the moment of savings accounts being pointless because of such low interest but it must be remembered that you can accumulate a very subsantial tax free savings lump (as above, some £50k). Over the years this can be very lucrative.

Whilst I tend to agree that those that can risk the capital might want to think of other relatively low risk investments such as bonds, the first port of call each year for almost all people should be cash ISAs for savings.

Further, you should remember/be bothered to switch accounts each year to maximise your returns, as your capital grows this becomes ever more lucrative

felix96

What should one do when the cash ISA balance reaches and surpasses £50,000? How do you make it safe and protected?
Any ideas?

Baldur

felix96 wrote: »

What should one do when the cash ISA balance reaches and surpasses £50,000? How do you make it safe and protected?
Any ideas?

The HMRC rules permit partial transfers of previous tax years' ISA funds (but current tax year's funds MUST be transferred whole), so it's simply a case of finding a new provider that offers a good rate and accepts partial transfers (not all do) and transferring an appropriate 'chunk' of your funds to that provider, leaving you with under £50k in both ISAs.

libra10

As both my OH and myself have invested in tax free accounts, first Tessa's, then ISA's, we are in a similar situation ourselves.

Surely the government should be looking at increasing their 50K limit guarantee?

Lokolo

Why? You can split ISA allowance once a year has passed.

Baldur

libra10 wrote: »

As both my OH and myself have invested in tax free accounts, first Tessa's, then ISA's, we are in a similar situation ourselves.

Surely the government should be looking at increasing their 50K limit guarantee?

They only increased it to 50k last October.

libra10

There are lots of savers who are in a similar position to ourselves. I believe the guarantee limits should definitely be raised, baldur.