Stupid ISA Question

Jakg

Forgive this really stupid ISA question.

Lets say the ISA cash limit is £5k.

Does this mean that this year I can put away £5k this year, and keep it in an ISA forever - but only that one single £5k? Next year I can keep the same ISA, or I can switch to a new provider - but I can't have both.

Or does it mean I can put £5k in an ISA each year - and either have 10 ISA's in 10 years time or 1 ISA with 10x£5k in there?

pqrdef

Jakg wrote: »

Or does it mean I can put £5k in an ISA each year - and either have 10 ISA's in 10 years time or 1 ISA with 10x£5k in there?

Yes, either. It's viewed primarily as a way of accumulating retirement funds, though you don't have to.

agrinnall

Or indeed anything in between. I have had as many as 4 cash ISAs, although at the moment I'm down to 2, one for the current year and one with all the previous contributions (although I've just found out today that the interest rate on that one is being cut so I'll be on the lookout for yet another home for it). It's definitely worth keeping an eye on rates and if a better one becomes available then consider doing a transfer in if the new account accepts them.

http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Jakg

So if you had them year after year you could have (lets say) £20k in across different ISA's, from different years?

I'm asking as ATM an ISA doesn't work out any better than putting it in my existing savings account - but if it's a cumulative thing I better start opening them early.

innovate

Jakg wrote: »

So if you had them year after year you could have (lets say) £20k in across different ISA's, from different years?

Yes you can. People who have been maxing their ISAs (and PEPs before then) can have in excess of £100K in cash ISAs now. A lot more in S&S ISAs...

BTW, there is an ISA board here http://forums.moneysavingexpert.com/forumdisplay.php?f=18