Cash ISA

tedglen3

Hello everyone,

Me and my girlfriend are very confused about Cash ISA’s

We have a cash isa open with HSBC and has been for many years, it has £3000 in it.

We now have £5000 in our bank account that we wish to put in an ISA. Are we able to add this to out current ISA of £3000? Or do you have to open a completely new ISA each tax year?

Lokolo

You can choose to top up an existing ISA or open a new one.

It's likely that your HSBC ISA is on a very low rate, so would be worthwhile transferring it.

tedglen3

So can i add the £5100 to my current ISA now, and does that mean i can add another £5100 to the same ISA after april 6th

lisyloo

Yes, but it's £5340 after April 6th as it's going up.
BTW - I notice you are using the word "our" in relation to your ISA.
The I stands for individual.
You can have one each so you have that allowance EACH.
It might be better if you split your money.
I don't want to be negative but that would be better if you split.

tedglen3

Ok thanks for help everyone.

Just woundering, how do i keep track on how much money goes in and out of ISA. will it just not allow me to add any more funds when i reach the limit ? i was just woundering how the bank manages this

CLAPTON

tedglen3 wrote: »

Ok thanks for help everyone.

Just woundering, how do i keep track on how much money goes in and out of ISA. will it just not allow me to add any more funds when i reach the limit ? i was just woundering how the bank manages this

computers programs do it, just like they can tell when you go over an overdraft limit or exceed your credit card limit

tedglen3

is there a fee for exceeding ?

pqrdef

tedglen3 wrote: »

We have a cash isa open with HSBC and has been for many years, it has £3000 in it.

If you didn't pay in any money during 2009-10, you'll have to make a declaration to reactivate the ISA.

thenudeone

tedglen3 wrote: »

is there a fee for exceeding ?

Unlikely, but it is possible because the bank has to either dump the excess into a different non-ISA account or return it through the payment system to the original sender. You would need to check the terms.

tedglen3

pqrdef wrote: »

If you didn't pay in any money during 2009-10, you'll have to make a declaration to reactivate the ISA.

How do u go about doing this ?

Mikeyorks

You get either a reactivation or simply a new application form from them. Before you attempt to fund it.

But ....... as you were warned very early on in the thread - the interest rate on an old variable rate ISA is likely to be about 0.1%. So why would you want to add funds to that? Unless it's simply to get the money in before 6th April .... and then immediately initiate a transfer of the ISA to a better rate elsewhere.