ISA limits?

moneydragon99

Hi all,
I am new on here.
I put £10000 in an Isa last October which at 2.7 ish percent.
I recently put £5000 in this tax year at 4.5 ish percent.
I know the limit is £20000 a year. But is this £20000 on top of the £15000 I have in 2 tax years.
When thew £10000 1 year fixed rate ends in October. Will this be automatically take out £10000 of this years tax limit if it goes into a new ISA.
I am so confused. I am able to save £800 a month which my goal is £10000 a year.
IS this £20000 a year a new £20000. So in hind site, if you have £60000 in the current account. Can you put 3 x £20000 into three seperate tax years.

tacpot12

The limit is £20,000 per tax year. 

When the 1 year fixed rate ends in October, if you do nothing else, the money remains where it is in the ISA. It doesn't move to a new ISA. So, in October 2023, you still have £20,000 of ISA allowance you can use before 5th April 2024.

If you pay £800 per month into the ISA starting now, you will have paid 9 payments, so will have paid £7,200 into the ISA and could still pay a further £12,800 (£20,000 - £7,200) into the ISA before 5th April 2024.  

You can put in 3 x £20,000 in three seperate tax years. 

400ixl

£20,000 of new money per tax year.

So if you out £10k in last tax year (pre April 23) then that is now done.
If you have put £5k in this year (April-Jun 23) then you have £15k left you can invest before end of this financial year.

If the money is already in an ISA bubble from previous years (your £10k) then it is not classed as new money if you transfer it to another ISA. , say for a better rate.

moneydragon99

So, whats the best way to put £833 a month, £10000 the goal. Wait till you have the 10k or put it in quarters of £2500. 

refluxer

The majority of fixed rate cash ISAs do not allow further contributions beyond either the initial account application or a limited funding window (usually 1 month maximum) so, depending on the provider you chose and/or the date you took it out, you may not be able to add another £15k to the fixed rate ISA you've taken out this tax year. Who is this ISA with ?

moneydragon99

you can put in more. I am not disclosing bank name.. 

refluxer

Fair enough. If you're likely to pay tax on the interest earned by that £833/month then presumably the sooner you get it into the ISA, the better.