Cash Isa interest question..

swooper

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 ?

Dazed_and_C0nfused

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 ?

It will depend on the terms you agreed to.

But transferring over £20k to another Cash ISA wouldn't be a problem.

The £20k limit relates to adding new funds.

swooper

Oh I see ! Thanks penny dropped ! 

Albermarle

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 ?

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. 

saajan_12

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.