New to 40%-help!

eskbanker

Bookworm105 said:

booneruk said:

Leeslady said:

Thanks all. And is that a new 20grand into ISA every year? Or can you only have one running at a time? 
(You can tell I've been skint for my whole life so far, right?)

The 20k allowance renews every new financial year [Usually the 6th of April I believe]. There are some lucky ISA millionaires out there who have been squirrelling away for years!

whilst squirreling in an ISA is great for a higher rate taxpayer, the max anyone can have invested since ISA started in 1999 is £241,520
even with compounded interest that will be still be short of being a millionaire, but still a significant sum of money for most people and all tax free.

That figure is actually £261,520 since April but references to "ISA millionaires" usually reflect those who also used the immediate precursors to ISA, such as PEP, TESSA, etc, and also those who invest rather than save - as you say, savings interest won't deliver that sort of growth but investment appreciation can (for a lucky few!).

rnj

you can inherit isas so some of those millionaires may paritally have that.