Some complete newbie questions about ISAs

Hazzie

How do ISAs work when your savings reach the yearly limit?

Say i invested 20K in a cash ISA. What happens to the interest earned from it? Does it go back into the pot and that then goes for the following year or are you forced to take it?

Also say i invested 20K in 2024/2025 ISA, what happens to that 20K for 2025/2026 year? Does it remain in the 2024/2025 investment indefinitely earning interest or does that close and you have to put your money in another one for the following year?

I am just wondering as if i was in the fortunate state of having say 40 or 60k to invest could i have 3 ISAs (1 ISA every year for 3 years each earning interest) or is it just grand total of 1 ISA with a max of 20k and i would have to find some other investment opportunity for the other amount of money i had.

Hope that makes sense.

Albermarle

Suggest you read through the forum, there are lots of similar questions asked and answered.
What to do with maxed out isa interest — MoneySavingExpert Forum

mebu60

It's £20k new money per tax year.

Any interest earnt and previous year's subscriptions don't count towards the current year's £20k.