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Cash Isas and interest

Hi,

Possibly a dumb question this but I was a bit well unsure.

Am saving for a house deposit and want to use a quick access cash isa and pref this years allowence and then next years allowence.

- Some pay interest annually some pay monthly and some a mix. If for example my money was in an ISA 3 months and the interest paid annually and I withdrew the money would I still get the interest and if so I take it I would have to wait until the annual payout date to get it?

- Can you recommend a good monthly interest paying ISA if the above scenario ment I would lose the interest.

- When the new tax year comes do I have to open another ISA or just continue to save in my existing one to capitalise on my 6000 limit?


Many Thanks for the help.

Cheers :confused:

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Silver99 wrote:
    Hi,

    ...I withdrew the money would I still get the interest and if so I take it I would have to wait until the annual payout date to get it?

    - When the new tax year comes do I have to open another ISA or just continue to save in my existing one to capitalise on my 6000 limit?

    Yes, you will get interest if you CLOSE your account. Otherwise you will get interest at the end, but still can use the account next year.

    If you do not close it next year you can either use your old account or open a new one with other provider.
  • Silver99
    Silver99 Posts: 10 Forumite
    Cheers for that so my understanding at the moment is for example take the FD isa and then come october transfer it to another ISA.

    Are you limited to 1 isa per year so if you close one you can't open another one till the new tax year?
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I also am going to do this with FD. I am opening ISA with them for current 04/05 tax year. In October will transfer the money to one of my other ISAs or will apply for a new one.
    I do not know whether it is allowed to transfer this year’s ISA to a completely new one within the same tax year.
    Does anybody know?
  • leaphaze
    leaphaze Posts: 357 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Yes, you can transfer the current tax year's ISA, but you must transfer the entire amount for the tax year (plus interest). since you cannot have more than one provider per tax-year.
    Wearing my other one today.
  • Chillum
    Chillum Posts: 17 Forumite
    Please note that you can only transfer your ISA once per tax year so that for you to transfer out of the First Direct ISA, you would need to have opened the account before the start of April.
  • isasmurf
    isasmurf Posts: 1,998 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    No. You can transfer your ISA as many times as you like. There are no restrictions on the amount of times you can transfer your ISA during the year.
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