Questions about ISA - help please.

steveo999

Hi,


I have an Alliance and Leicester ISA

Between 23rd march and now I have put in £3200.

Now i dont understand the 3000 limit. Does this mean I wont get any interest on anything over £3000?

I have not received any interest yet, when is this paid, in april 2007?

Should I now start putting excess money into another type of savings account?

Next year can I pay in another £3000 to the ISA - and at the end of that year will I get interest on the full £6000?


Ignore my ignorance/stupididty new to saving!

jem16

Some ISA pay interest at the end of the tax year and some pay on the anniversary of opening the account. It sounds like yours might be the latter.

The £3000 limit means that this is the maximum amount you can pay in in any one tax year. Once you hit that limit you would need to use another type of savings account.

As for interest it is paid on the full amount. So if you paid in £3k this year and £3k next year, you get interest on the whole £6k.

isasmurf

When interest will be paid will be stated in your T&C.
Alliance & Leicester pay interest on their Direct ISA on January 1st.
http://www.alliance-leicester.co.uk/directisauserguide/index.asp?page=page2

steveo999

Brilliant - thanks guys - yes I get my interest on 1st Jan

1 more question

Im allowed 3000 a year.

When can I start pyaing in money over that (i.e. my next years £3000 allocation)??

I assume i might as well take out the £200 over and use it to pay off credit card for example?

dunstonh

6th April 2007 is the start of the next tax year. That is when the slate is wiped clean and you get a brand new £7000 allowance (£3000 on Cash ISA).

jennifernil

How much did you put in before 6th April this year? Whatever that was then subtract it from the £3200. If the answer is less than £3000 then you can still pay in up to the £3000 before 6th April 2007. Then you start afresh with your new £3000 allowance for the tax year 2007/2008.

Cypher

steveo999 wrote:

I have an Alliance and Leicester ISA

Between 23rd march and now I have put in £3200.

Anything you paid in before 6th April is not counted towards this years 3000 limit. Its part of the previous years.

So if you opened the ISA on 23 March and say paid in £1000 initial deposit then your 2006/07 allowance of 3000 has only seen £2200 so you could pay in another £800 before April 07. In April 07 you then are allowed to pay in a further £3000 (Apr to Apr)

How much did you pay in between 23rd March 06 and 5th April 06 ?

steveo999

I put in £2500 before 7th April 2006 - so this means I can still put in £2300?

What I find strange is my online balance shows £3200 but my available balance is £3100??

jem16

steveo999 wrote:

I put in £2500 before 7th April 2006 - so this means I can still put in £2300?

I'll assume you mean 6th April and not 7th? Anything paid in on the 5th April or before counted for last year. Anything paid in on the 6th April and after counts for this tax year. So yes you would have £2300 left to still put in.

What I find strange is my online balance shows £3200 but my available balance is £3100??

Did £100 just get paid in recently and may not have cleared through the system yet?

tom188

There is probably a £100 minimum balance depending on product.