Multiple years isa

BurkieDaddyo

Hopefully this is a simple one (not for me though as been searching for hours and still not sure).

can I have multiple years cash ISA running tax free?
I’m thinking can you -

Open a cash ISA today for this year and deposit 20k 
Then open a new one in May next year with 20k 

I think the answer is yes as long as I only ever pay into mg newest one,  but my question is would they both continue to attract tax free interest for the coming years (assuming the rules don’t change)

so after 5 years you could effectively have 100k in cash ISAs all running at the same time and gaining tax free interest every year?

refluxer

Yes, you can open a new cash ISA (or ISAs) each tax year and pay in up to £20k and if you did this for 5 years, you would end up with £100k earning interest tax-free year after year, provided the money is kept within the ISA 'wrapper' (ie. you transfer the ISA funds using the correct transfer process if you ever want to move money from one ISA to another and don't withdraw the money yourself).

Whether you can pay future allowances into an existing cash ISA will depend on the T&Cs for the account in question but, in general, you can with easy access cash ISAs but not with fixed rate cash ISAs (although there are a few providers who do allow further contributions to the latter throughout the duration of the fixed rate period)

Albermarle

This forum is a good place to search with your ISA questions. Better than just googling.

jimjames

BurkieDaddyo said:

so after 5 years you could effectively have 100k in cash ISAs all running at the same time and gaining tax free interest every year?

If you had a S&S ISA you could have substantially more than that tax free, some have ISAs with well over a million invested.