general question on ISA'S

albertf47

Could someone clarify

Can i open an ISA every tax year and invest £3600 (or new figure £5100 as of 01/10/09) into each isa account? i.e so after 5 years i would have 5 ISA's all recieveing £3600 each evey year.

or is it £3600 into one of the 5 ISA accounts

or can I divide £3600 between the 5 ISA accounts?

I already have an ISA and after i spoke to my bank she said I could re-invest my first ISA and still open a new ISA and still invest £3600 into each ISA. Thats £7200 cash between the two ISA's.

she has totally confused me.

thanks in advance

adam

libra10

Currently you're allowed to invest up to £3600 in a cash ISA each tax year. You can either add to your current ISA or open a new one. If the rate you're receiving on your current ISA account is competitive, it would be simpler to add this year's ISA allowance to this account.

Good luck

masonic

albertf47 wrote: »

or is it £3600 into one of the 5 ISA accounts

It's this one.

I already have an ISA and after i spoke to my bank she said I could re-invest my first ISA and still open a new ISA and still invest £3600 into each ISA. Thats £7200 cash between the two ISA's.

She's got it wrong. Unless one is cash and the other is stocks & shares.

albertf47

Ok guys thanks for the info.

So My limit is £3600 (or soon to be £5100) per year whether i have opened 1 ISA or 5 overs the last 5 year.

What the girl at the bank mean't, (i think) was to carry on my original ISA without adding any more money to it, under a fixed ISA, then still have the £3600 allowance to either add to my original ISA or open a new ISA.

She confused me with £7200 cash/2 x ISA's bit.

Right thanks again guys.

MM46

When did you open your existing ISA? If it was in a previous tax year, and was not topped up in this tax year, then you could either transfer that one or leave it where it is and still be able to open a new one in this tax year (ie.since 6th April)

nrsql

Think of each tax year as separate. At the end of the tax year that isa is closed - you can't add to it, just withdraw or transfer. Any contributions will be to a new isa which can be with the same of different provider.

You can contribute max of £7,200 to a s&s isa (or £3600 to a cash isa and the rest to a s&s isa) which from the above will be to the open isa (for the current year). This is the sum of contributions - any withdrawals do not affect the total.