Confused about Natwest e-ISA

betternow8400

We've got £25k in a savings account which we were going to transfer into. Natwest e-ISA and then another £18k in another account which we also want to transfer

It talks about balances of over £30k etc, but then it says the max we can save is £5k or something?!

So can we transfer £25k plus £18k or not?

Very confused!

Will we earn the interest on all that?

Sorry, complete novice here

ccbrowning

Is your £25K in a savings account or a Cash ISA account? If it is not in an ISA already you can only put £5640 in this year. I think that is the £5K number you are seeing.

betternow8400

It's in an instant access savings at the moment.

This is the natwest e-isa,...... It talks of high balances So I must be able to transfer into it?

http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx

ccbrowning

No, you can only transfer more than £5640 into it if the money comes from another ISA. Since the money is in an instant access savings account you are limited to putting in £5640 now but you could put another £5640 in April next year.

Vortigern

betternow8400 wrote: »

We've got £25k in a savings account...

As stated above, you can only add about £5k per year into a cash ISA - and transfer means transfer from another ISA.

You used the word "We" - so there must be 2 of you. There are no joint ISAs but each of you can open an ISA this tax year (ie now); each can add £5k now and another £5k next tax year. That's £20K sorted already.

betternow8400

Thank you everyone, we'll both open one.

I'm a complete novice about ISAs, but I understand them now you've explained :j

ccbrowning

Good point on each person putting money into their own ISA.

Also, if your time horizon is a few years or more, you could also use some money to invest via a Stocks and Shares ISA, using index funds, etc.