Cash Isa interest question..

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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  • 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
    swooper Posts: 24
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    Oh I see ! Thanks penny dropped ! 
  • Albermarle
    Albermarle Posts: 21,207
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    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
    saajan_12 Posts: 3,572
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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. 
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