We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Why can you only have £3k in an ISA ?
Comments
-
Not very exciting, but once you have hit your ISA limit, why not pay off your mortgage with any other available funds ? I don't believe you can be taxed for NOT incurring a cost (i.e. the interest saved).
It doesn't sound thrilling but it probably (depending on rates/redemption penalties etc) works out considerably better than the net return on a taxed savings account, especially for a higher rate tax payer.
Please correct me if I am wrong.
There's been a long discussion of this on the mortgage board called "Overpayments". I'm too tired/lazy to look up the link, but it's fairly recent.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
-
The interest in your ISA can also accumulate in your ISA so that the interest on the interest is also tax-free - that would have impressed Albert Einstein!
In fact, it did!
http://www.fool.com/foolu/askfoolu/1999/askfoolu990915.htm0 -
Yes, it is great that the interest on ISAs can be compounded tax free ;D . . . but if you don't make ANY withdrawals on an 'old' ISA in, say 5 years, and then want to do so will the ISA funds become frozen or dormant through lack of transactions on the account ???
I am hoping this is not too much of a silly question
LeiaI want to be a good saver, but I find it difficult to control my temptation to spend
.
I owe £1,247 more than I have in savings
.
.0 -
Next financial year and thereafter you will only be able to invest a further £1000 in mini cash ISAs 2004-2005...............................I have put my clock back....... Kcolc ym0
-
Don't worry. Accounts don't stop working if you don't use them. Only on very rare occasions are extremely old savings accounts withdrawn and savers asked to move their money to a different account (moved to a default if you don't reply).if you don't make ANY withdrawals on an 'old' ISA in, say 5 years, and then want to do so will the ISA funds become frozen or dormant through lack of transactions on the account ??
More of a problem is that interest rates on old accounts are gradually reduced. The building societies "milk" their existing savers. New products have great rates, old products have useless rates. For this reason every couple of years (at the most) you should check the interest rates you are getting. If it is no longer much good you are allowed to move the ISA to another provider. The new provider will handle the transfer for you.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards