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rosettajimpson

:j
Please can you advise. I don't undertsand ISAs?
I have two isas with a well know bank
One 2010-2011and the other 2011-2012- I managed to save the full cash amount into each. Do I still get tax releif on both or does this only apply for the current tax year?
Is it best to transfer the money from 2011 and now 2012 into other savinfgs accounst like bonds as I set up my new 2012-13 isa.?

Comments

  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    They do keep their tax-free status yes, so it is not a good idea to withdraw the money from the ISA and put it in taxable savings like bonds. You ideally want to keep the money in an ISA wrapper as long as you can.

    You probably do however want to transfer your older ISAs to another provider as the interest rate has likely dropped to a low rate. The headline rates often include bonuses which only last so long, before it drops down. So when shopping around for a new ISA, have a look for ones which allow transfers in and then transfer your old year ISAs there. Make sure you use the transfer forms provided - do not withdraw the money yourself.

    Also, you don't necessarily have to transfer the old ISAs into the new ISA you're opening for this year. Often the best rate ISAs don't allow transfers in, so you might want to just put new money there and then transfer your old ISAs somewhere else. Old ISAs do not count as your subscription for the year, so you can have ISAs with different providers and split up in your previous years' ISAs any way you wish.
    This is everybody's fault but mine.
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