Fixed rate 2 year Cash ISA

setty

I was looking at a Fixed rate cash ISA for 2 years. I understand i can only put £20,000 in per tax year.

So if i was to put the maximum allowance in each year would i get paid interest on the £40,000 & it remain tax free? Or would the interest only be paid for £20,000.

I understand the first years interest would only be paid for £20,000.

But would the 2nd years interest be paid for just the additional 20,000 i put in or for the total 40,000?

gravel_2

I think you should read a bit more about what an ISA (or indeed a savings account) is. It would likely help you find the answer for yourself. Your question suggests a fundamental misunderstanding.

Which bank? Which product? You may be prohibited from adding extra cash to the fixed ISA, but you would be able to open a second ISA for the subsequent tax year's £20k subscription.

If the fixed product allows you to add new cash mid-term then you would receive the interest on the total amount, but only for the duration it that money is actually in the account. So if you had 20k in the account for 6 months then topped up to 40k for the remaining 18 months you would be paid approx 6 months' worth of the annual rate of interest on 20k and then approx 18 months' worth of the annual rate of interest on 40k.

Ocelot

You can have hundreds of thousands in ISAs from previous years and still get the interest on all of it tax free.

Albermarle

I think you should read a bit more about what an ISA (or indeed a savings account) is. It would likely help you find the answer for yourself. Your question suggests a fundamental misunderstanding.

OP- Reading through this forum can be useful in improving your knowledge about ISA's