ISA question

Graham1982

Hello everyone

This might be a silly question but ask I shall. If I have 40k to invest and I choose the ISA route can I put 20k in before April ANS another 20k after April, so bridging the tax years and thereby receive a 5 percent return on the whole 40k by next year?

Thanks

Graham

Ayr_Rage

Yes, you can do that.

This year's £20,000 must be in by April 5th, do take into account the time taken to open the account and fund it.

Graham1982

Hello @Ayr_Rage

So, I will achieve the full percentage on the total amount?

Thanks

george4064

Provided the terms and conditions of the (presumably cash ISA?) allows multiple deposits over whatever period you will be making the two deposits, then yes.

eskbanker

Graham1982 said:

Hello @Ayr_Rage

So, I will achieve the full percentage on the total amount?

Thanks

Interest will be accrued based on daily balances, so while there's £20K in the account, that's what the interest will be based on for each day, and then once you increase the balance to £40K it'll earn based on that - you'd obviously need to hold £40K in the account for a year to earn the full percentage on the total amount.  However, interest payments may not be aligned with annual anniversaries from opening the account, so check what the product terms state....