My First ISA

I find myself with some money to invest, for the first time.
If I put £20k into an ISA this year, could I do the same again in April, or do I have to wait a year?
I've noticed some are %5+. . does this mean £5 interest on every £100 per year? 
So I could turn £40,000 into £42,000 by April 2025?
Is it naïve of me to think I could continue getting 5% for the foreseeable future?

Comments

  • masonic
    masonic Posts: 22,845
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    Yes, you get a £20k allowance to use whenever you wish within each tax year, so you do not have to wait beyond 6th April for the next £20k.
    5% does indeed mean £5 per £100 interest per year, but remember that inflation will also reduce the value of the original £100, so it might not be quite as attractive as it appears. The best savings accounts have tended to deliver interest that is slightly ahead of inflation on average, although there are periods where interest was well below inflation (such as the past 18 months)
  • jimjames
    jimjames Posts: 17,494
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    edited 21 November 2023 at 9:00AM
    GE0RDIE said:
    I find myself with some money to invest, for the first time.

    Just to be clear, you've stated invest but from the rest of your post it looks like you actually mean savings. Investments carry a degree of risk and you would need to open a S&S ISA not a cash ISA if you want to use investments. Also check whether an ISA will be of use to you which will depend on your tax situation.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Reed_Richards
    Reed_Richards Posts: 3,985
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    edited 21 November 2023 at 8:26AM
    jimjames said:

    ... Also check whether an ISA will be of use to you which will depend on your tax situation.
    That's your tax situation both now and in the future; don't be short-sighted about this.  The more you save in an ISA, the more you earn and the greater the interest rate then the more likely you will benefit from having your money in an ISA.  Even if there is little tax benefit now there may be in future, and you can only add £20k per tax year to your ISA savings. 
    Reed
  • Albermarle
    Albermarle Posts: 21,099
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    GE0RDIE said:
    I find myself with some money to invest, for the first time. I think you mean save rather than invest.
    If I put £20k into an ISA this year, could I do the same again in April, or do I have to wait a year? You can add £20K per tax year.
    I've noticed some are %5+. . does this mean £5 interest on every £100 per year? Yes
    So I could turn £40,000 into £42,000 by April 2025? If you invested £20K today and £20K in April 2024, you would have a bit more than £42K
    Is it naïve of me to think I could continue getting 5% for the foreseeable future? For easy access savings accounts the 5% will probably start to drift downwards next year. However you could get a fixed rate/fixed term account.

    Answers in bold above. If you read through this forum you will be much better informed about savings and ISA's 
    Also suggest you read this.
    Savings - All Guides - MoneySavingExpert
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