Isa question

ulysses76

Apologies if this has been asked or answered previously.
Would I be able to open an Isa tomorrow with only £1 & then top it up to the £3600 limit after April 5th?
I haven't opened an Isa this tax year & don't have the available funds to use up my full allowance.
I was hoping to open a Santander Flexible 3.5% Isa for 09/10 with only £1 & then put in another £3599 in a fortnight or so.
Is this acceptable?
Or would this £3599 count as the 10/11 Isa?
Advice greatly appreciated.
:j

Sanzai

The £3599 would count for the 2010/11 tax year allowance if you do as you are thinking.

My advice would be to put whatever you can spare into the account now to make the most use of your tax allowance, and then put more in during the next tax year as and when you can.

ulysses76

Drat!

Thanks anyway Sanzai
:j

Devin_Shockwell

In a nut shell each fiscal year you are given a limited ISA allowance. From 6th April the ISA limit is £5,100 (for a cash ISA) for the financial year 6th April 2010 to 5th April 2011. After which you can open another cash ISA for £5,100 for the financial year 6th April 2011 to 5th April 2012. This limit is fixed and you can not pay in funds over the £5,100 limit, or make additional contributions after maing a withdraw.

For example you can pay in £5,100 then maybe depending on the type of ISA, withdraw £1,000. However you can not pay back in the £1,000 because your £5,100 allowance had already been paid in! So you have to be clever when it comes to ISA