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Cash Isa interest question..
swooper
Posts: 24 Forumite
I fear this may be a stupid question , if there is such a thing but here goes!
I have 20K in this years ISA allowance. Once the interest is paid where does it go ? Is it added to the ISA account ? If so I'd be over my 20K allowance and how could I then transfer that to a new product next April when the total value is the above 20K ? I assume I'm missing something really obvious ?
I have 20K in this years ISA allowance. Once the interest is paid where does it go ? Is it added to the ISA account ? If so I'd be over my 20K allowance and how could I then transfer that to a new product next April when the total value is the above 20K ? I assume I'm missing something really obvious ?
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Comments
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It will depend on the terms you agreed to.swooper said:I fear this may be a stupid question , if there is such a thing but here goes!
I have 20K in this years ISA allowance. Once the interest is paid where does it go ? Is it added to the ISA account ? If so I'd be over my 20K allowance and how could I then transfer that to a new product next April when the total value is the above 20K ? I assume I'm missing something really obvious ?
But transferring over £20k to another Cash ISA wouldn't be a problem.
The £20k limit relates to adding new funds.0 -
Oh I see ! Thanks penny dropped !1
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It is not a stupid question, but you would have found the answer to this and many other ISA questions by scrolling through the forum, which can be very informative.swooper said:I fear this may be a stupid question , if there is such a thing but here goes!
I have 20K in this years ISA allowance. Once the interest is paid where does it go ? Is it added to the ISA account ? If so I'd be over my 20K allowance and how could I then transfer that to a new product next April when the total value is the above 20K ? I assume I'm missing something really obvious ?
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The 20k only applies to adding new funds in any given tax year. Once the funds are in an ISA, they can earn interest / dividends, the balance can be transferred between ISAs, added to previous years' money etc, so the balance can increase above 20k.0
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