Help with an ISA.

Maldwyn.L

Do I have to take the interest that I have earned on my ISA out at the end of the year. As this will be over the 20K allowance. Or can I keep the capital 20+ interest in the same account for the next financial year

eskbanker

The £20K allowance only relates to how much you can pay into ISAs, so interest doesn't count towards this and can be left to compound and accumulate within the account.

FrugaiMacDugal

In new tax year you can then add another £20k to existing ISA or transfer all to a new provider, if you find a better rate, but must use new provider to initiate transfer to maintain ISA status.

Albermarle

Maldwyn.L said:

Do I have to take the interest that I have earned on my ISA out at the end of the year. As this will be over the 20K allowance. Or can I keep the capital 20+ interest in the same account for the next financial year

Maybe would be a good idea spending half an hour reading through this forum as a good way to get up to speed with ISA rules, as there are lots of similar questions asked regularly.