Sorry, but so confused! Help please!!!

simplesfan

Hi

I apologise in advance, as I'm sure there are plenty of posts on this forum with this type of question, but I've been reading through threads and still can't work it out!

I have two ISAs with different banks - both cash I believe - one with £6k and one with £3.5k.

The latter I opened last financial year, but the former I've had for a few years now.

I think I'm over the limit by some way, but am not sure what I should do - take the money out where I'm over and open a savings account was what I have been considering.

I'd be grateful of any advice on my situation please!

Aegis

You can transfer both to a better paying ISA without using any of your limit for this year. Simply go to a new provider with a better rate and ask for details about how to transfer in.

simplesfan

Thanks for the quick response Aegis!

Do I not have too much money in ISAs already though? I thought the limit was £7200?

glider3560

The limit in cash ISAs is currently £3600 every tax year. You can have a new ISA every year - so in theory you could have over £30k in ISAs by now!

simplesfan

Got ya! Cheers.

So the £7200 is a yearly limit? Should I be doing anything with the larger ISA I have, or is that ok to stay as it is and earn interest tax free?

Lokolo

simplesfan wrote: »

Got ya! Cheers.

So the £7200 is a yearly limit? Should I be doing anything with the larger ISA I have, or is that ok to stay as it is and earn interest tax free?

Yes which includes Stocks and Shares part. Cash is just £3,600.

The larger ISA can be put in with the smaller one to have one ISA with a total of £9.5k if you want.

They always continue to earn tax free interest.

glider3560

Also, remember that by year they mean 6th April - 5th April, not 1st Jan - 31st Dec!!

KingL

So how did you get £6k in a cash ISA in the first place? If it was £3000 paid in twice during two different tax years, there's no problem. But if you somehow paid it all in during the same tax year, you'll have some grovelling to the taxman to do.

In any event, you should check what interest rate you are getting. They tend to drop over time, so you will probably want to transfer them to a better paying cash ISA.