Payment of interest in fixed ISAs

George_Mainwaring

I have a couple of fixed-term ISAs with the Halifax, and when I opened them I was asked into which account I wanted the interest paid. There was no option to have the interest paid into the ISA itself, so I said my main savings account.

However, looking at my online statements, I see that the interest was recently paid into the ISAs themselves, before being transferred by standing order into my savings account the next day. There are no standing orders set up, so this must be some internal Halifax thing.

So was I entitled to have ISA interest paid into the fixed ISA itself so that it can earn more tax-free interest?

If I can have interest paid into an old ISA (raising the amount above the allowance for the tax year it was opened) is that amount deducted from the current year's allowance or anything?

skitskut

Yes you can have the interest paid into the ISA itself. Any interest earned has no effect at all on your allowance.