ISA question

RobLondon1984

I opened an ISA last August, do I need to wait till this August to deposit more money in?I don't know how the tax year works, because I though you can open a ISA anytime of the year?

Thanks

oldfella

you can put £3k in this tax year which finishes on April 5th, and another £3k any time after April 6th

InMyDreams

oldfella wrote: »

you can put £3k in this tax year

To clarify; you can put in £3k *minus* whatever you've put in the account so far. So if you opened in August 06 with the full £3k, no you can't put any more money in until April 6th 07. You can make as many payments into the account as you like between 6th April and 5th April the following year, so long as the sum of all the payments is not more than £3K. Yes, you can open an ISA at any point during the tax year.

RobLondon1984

InMyDreams wrote: »

To clarify; you can put in £3k *minus* whatever you've put in the account so far. So if you opened in August 06 with the full £3k, no you can't put any more money in until April 6th 07. You can make as many payments into the account as you like between 6th April and 5th April the following year, so long as the sum of all the payments is not more than £3K. Yes, you can open an ISA at any point during the tax year.

I have 1k in an ISA, I was told that I cannot desposit more money into an ISA.

KTF

You can deposit up to 3K in each tax year but any money you take out cannot be put back in again during the tax year that you withdraw it in. i.e. if you had 3k and take out 2 so have 1k left, you cant put any more (up to 3k) in until the next tax year.

InMyDreams

RobLondon1984 wrote: »

I have 1k in an ISA, I was told that I cannot desposit more money into an ISA.

'an' ISA or 'the' ISA?

What KFT said, but also, if you do want to put in more if you haven't yet used up your allowance, you have to put it in the same ISA you opened in August. You can't contribute to more than 1 ISA in any tax year. I believe you could open one, but you wouldn't be able to deposit any new money into it until April 6th. Could this be the problem?

tom188

Is it a fixed rate bond where no further deposits are allowed?

KTF

That is generally the case, yes. Read the T&C to double check though.

RobLondon1984

tom188 wrote: »

Is it a fixed rate bond where no further deposits are allowed?

yes, the rate is fixed, not sure if its a fixed rate bond and yes, no further deposit is allowed

RobLondon1984

InMyDreams wrote: »

'an' ISA or 'the' ISA?

What KFT said, but also, if you do want to put in more if you haven't yet used up your allowance, you have to put it in the same ISA you opened in August. You can't contribute to more than 1 ISA in any tax year. I believe you could open one, but you wouldn't be able to deposit any new money into it until April 6th. Could this be the problem?

In the bank I deposit the ISA, I think that I am restricted to one ISA a year. I think "an" and "the" means the same thing I would of though?

This bit, I am not sure what you mean

"I believe you could open one, but you wouldn't be able to deposit any new money into it until April 6th. Could this be the problem?"

I think your just saying I can deposit up to 3k on April 6th this year. I think its a fixed rate, will have to check, meaning I just need to wait till August

tom188

The bottom line is that you cannot deposit any more money until April the 6th. If you choose to you can then deposit up to £3k during the year April 6th 2007 to April 5th 2008 then 3600 during the year April 6th 2008 to April 5th 2009.

If your not going to deposit the whole lot as once I would avoid fixed rate bonds. As you have seen you have foregone the rest of your tax free allowance for this year because of it.