Isa Help Urgent!

Lighters

I have a regular savings account and recently opened an ISA

I transferred a total amount of 3k into my isa but i just figured out it was stupid because it means all the interest i will get wont matter because 3k is the max you can have in your account.

I can easily transfer the money between my savings account and ISA as there both through HSBC so what should i do because im not exactly clear about how ISA's work when taking money and replacing it and the yearly reset....

How can i get maximum interest with the 3k in my isa atm

tanith

Leave it where it is as the interest will be added and thats allowed... so when the new allowance starts on April 5th you will have your original £3000+interest and then you can either add more to it up to £3600 or just keep your original money+interest which will be accruing more interest in the new year...

I hope that makes sense...:rotfl:

missile

No need to worry. £3K is the max you can deposit into a cash ISA this year, but there is no restriction on interest credited to the account thereafter

Crabman

The £3k limit only applies to what you deposit into the ISA account. Interest paid into the account does affect your allowance.

If you withdraw the money from your ISA to your savings account, you'll lose the tax benefits - when you put money into an ISA you use your allowance but you don't get any of that allowance back if you withdraw funds from an ISA. Full details in the article, I'll move this to the ISA's sub-board