Question Of The Week: Cash ISAs

Former_MSE_Penelope

Q. If I put £3,600 (I'm 33) in a cash ISA in June but took £600 in December can I replace that amount in the same tax year? Wendy Pay

A. A cash ISA is simply a tax-free savings account you are allowed to deposit £3,600 each tax year. That's regardless how much you take out.

So the fact you've withdrawn £600 is irrelevant as you've PUT IN the max already.

As another example if you'd only deposit £2,600, you'd be allowed to put in another £1,000 this tax year. Yet if you then took £600 out nowt changes, you can still only stash £1,000 more away.

Click reply to discuss

iereboy

With a Cash ISA, if you take out money, you cannot replace the money!

If you put in £3600 in one tax year and you took out £600, you cannot replace that money again later on in that tax year!

That is what the banks "say" anyway.

OneADay

If you were allowed to take out £600 and replace that £600 at a later day, then it becomes just a special form of the standard saving account.

And banks would have a nightmare trying to track all the credit and withdrawals (not to mention the consumer).

slinga

I know most/all questions on ISAs have been answered on here at one time or another.
But I've got confused:(

1. Can I transfer/switch a cash ISA to a S/S ISA.

2.In the same tax year can I also switch/transfer more than one S/S ISA to more than one S/S Isa.

3. If I buy into a brand new S/S ISA to the max amount can I also transfer/switch cash ISAs and S/S ISAs in the same tax year.

Thanks.

Baldur

slinga wrote: »

1. Can I transfer/switch a cash ISA to a S/S ISA.

Yes, but not vice versa.

2.In the same tax year can I also switch/transfer more than one S/S ISA to more than one S/S Isa.

3. If I buy into a brand new S/S ISA to the max amount can I also transfer/switch cash ISAs and S/S ISAs in the same tax year.

There are no limitations on ISA transfers, whether Cash or Stocks & Shares, the tax year is only relevant as far as new subscriptions are concerned.