Transferred is a and they included the interest

poseidon1

jimjames said:

Peter999_2 said:

wrenlegs said:

I never knew that! So when we reinvest our isas, we can reinvest the interest and get interest free interest on that? In future then, if we wanted to use the interest at the end of a tax year, we instruct the bank to only reinvest £20k? Or do we HAVE to let them reinvest the interest accrued at the end of the previous tax year?

Yes, that is the case.   There are people out there who are ISA millionaires.       One of my friends has a lot of money in ISAs, he just makes sure that he has no more than £85,000 in each banks ISA to make sure the money is protected.       As you can imagine, he was over the moon when the interest rates rocketed.

If you're an ISA millionaire it's definitely not from holding cash ISAs so the £85k limit is irrelevant in that instance as investments are covered differently.

Vanguard did some research and if you'd paid the maximum into ISAs since 1999 then you'd have paid in around £300,000. With interest added you'd now have around £360k. If you'd invested it in a tracker fund instead you'd have nearly £900,000.

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/25-years-of-isas-how-much-could-you-have-made

Agree, simply was not possible to get to £1 million from cash ISAs - stockmarket investing was the way to go.

poseidon1

slinger2 said:

jimjames said:

Peter999_2 said:

wrenlegs said:

I never knew that! So when we reinvest our isas, we can reinvest the interest and get interest free interest on that? In future then, if we wanted to use the interest at the end of a tax year, we instruct the bank to only reinvest £20k? Or do we HAVE to let them reinvest the interest accrued at the end of the previous tax year?

Yes, that is the case.   There are people out there who are ISA millionaires.       One of my friends has a lot of money in ISAs, he just makes sure that he has no more than £85,000 in each banks ISA to make sure the money is protected.       As you can imagine, he was over the moon when the interest rates rocketed.

If you're an ISA millionaire it's definitely not from holding cash ISAs so the £85k limit is irrelevant in that instance as investments are covered differently.

Vanguard did some research and if you'd paid the maximum into ISAs since 1999 then you'd have paid in around £300,000. With interest added you'd now have around £360k. If you'd invested it in a tracker fund instead you'd have nearly £900,000.

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/25-years-of-isas-how-much-could-you-have-made

Of course it depends what tracker you pick. I had a pension fund from about 1999 that I put 20% in FTSE, 80% overseas. 20 years later the 20% in the FTSE had turned into 10% of the total. So I abandoned the UK completely and now I'm 100% overseas in that pot.

FTSE 100 index has been a complete dog for more years than i care to remember.