ISA clarification

paddy2006

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Aegis

paddy2006 wrote: »

Ok.
There is one thing about ISA's that I am rather curious about..If I were to open an ISA every year,and after 10 years I would be looking after 10 different ISA's?:eek: Or am I missing something?

If you wanted to. You could also contribute to the same ISA each year and have 1 ISA with 10 years worth of contributions and interest payments. Your call really.

And with an ISA,what happens when the full £3600 is placed into the account,do I still earn interest?

(£3000 up to this year, and £3600 after the 6th of April)

Yes, you do. Interest doesn't count as a contribution.

And how long does an ISA account last? If you get what I mean...

Indefinitely.

LittleVoice

Some responses in red in your post -

paddy2006 wrote: »

Ok.
There is one thing about ISA's that I am rather curious about..If I were to open an ISA every year,and after 10 years I would be looking after 10 different ISA's?:eek: Or am I missing something? You could end up with 1 or 10 or any number in between. If you went to a different provider each year or a different ISA with the same provider, you would have a number of the accounts but you could simply add funds each year to the same ISA account or transfer from one ISA to another and still only have one in total.

And with an ISA,what happens when the full £3600 is placed into the account,do I still earn interest? You carry on earning interest - it is only the capital which has a ceiling on it, there is no ceiling on the amount of interest which can be added and itself earn interest.

And how long does an ISA account last? It will last until the Chancellor decides that they are no longer going to be offered - and then may continue as accounts but not accept new contributions. Who knows! If you get what I mean...
I hope they are not unusual questions...