Interest on cash ISA

Hillwalker

I invested the maximum (£3,000) in a Cash ISA last year (2007 - 2008)
I haven't yet been told the total interest that it has made but I'm expecting it to be circa £180.
Assuming this is correct my new balance will be £3,180

Question.
Can I now invest a further £3,600 this year or am I limited to (£3,600 - £180) ?
i.e. £3,420

thanks
Andy

Lokolo

No the whole £3600 you can put in.

And the interest you will get it is depending on how many days you have had your ISA open for. a year is £180, 6 months £90, 3 months £45 etc. :beer:

Hillwalker

Lokolo, thanks for the quick response.

I am going to switch to ICEsave for my next ISA (2208-2009) and will invest the maximum in a lump sum (£3,600). At the same time I'm going to transfer the £3,180 that I have in my current ISA. Which means I will have a total of £6,780 invested.

Q1, Are my figures correct i.e can I include the interest from last years ISA in the transfer + an additional (this years allowance) £3,600.

Q2, I notice that ICEsave does not give the option of having interest paid into the ISA account so that it can't be added to future investments without it being part of your yearly allowance.
Any views/comments or did I get it wrong.

Lokolo

Q1: yes you can include money plus interest. if you h aven't been paid interest yet when you transfer it will get passed across upto the point (so if you have £3000 in for 6 months, £3000 + £90, will get transferred)

Q2: Um then it will automatically go into ISA. Most ISAs (ones that I know of anyway) will automatically put interest in ISA and not give you the option to put it elsewhere.

Um only thing is you said 'invested' whereas what you're actually doing is saving. Investments are stocks/shares/funds etc.etc.

Baldur

Hillwalker wrote: »

Lokolo, thanks for the quick response.

I am going to switch to ICEsave for my next ISA (2208-2009) and will invest the maximum in a lump sum (£3,600). At the same time I'm going to transfer the £3,180 that I have in my current ISA. Which means I will have a total of £6,780 invested.

Q1, Are my figures correct i.e can I include the interest from last years ISA in the transfer + an additional (this years allowance) £3,600.

Q2, I notice that ICEsave does not give the option of having interest paid into the ISA account so that it can't be added to future investments without it being part of your yearly allowance.
Any views/comments or did I get it wrong.

Forget the split of capital & interest as far as the previous year's ISA funds are concerned, I transferred £25k of partial previous years' ISA funds (including several years' interest) to Icesave in January or February this year - no problem.

All you are doing is transferring an ISA, you don't even need to specify the amount (just say ALL on the form} as that will have changed by the time it reaches Icesave, as a result of interest added in the time between receipt of your transfer request and the actual transfer taking place.

I subsequently transferred the ISA from Icesave to a fixed interest account elsewhere - the interest was added to the ISA upon transfer, as it has been with any institution with which I have held ISAs

Hillwalker

Lokolo wrote: »

Q2: Um then it will automatically go into ISA. Most ISAs (ones that I know of anyway) will automatically put interest in ISA and not give you the option to put it elsewhere.

May have mis-understood,
I would like them to pay the interest into my ISA account but they don't appear to give you this option. You can either have it paid to your feeder account or your ICEsave savings account but not the ISA account.

Is this what others who have ISA accounts with ICEsave have experienced?

I think it's a real issue because (assuming I'm right) that means the only way you can have the interest re-invested into the ISA is to use it as part of your next years allowance.

Baldur

@ Hillwalker

See my edited post above....

Lokolo

How are you applying? And is it the ICEsave easy access?

Readin the FAQ:

---

You can choose to have your interest paid monthly or annually. Interest can be paid:
- To your Easy Access ISA
- To an Icesave Easy Access Savings Account
- Direct into your nominated account in your name(s)

Monthly interest will be paid on the same day of each month as account opening whilst annual interest will be paid on the date as account opening each year.
For both monthly and annual interest paid to your nominated account - if any day is not a business day interest will be paid on the following business day.

---

So looking at it you can, but obviously if there is no option to I am not sure lol

Lokolo

Baldur wrote: »

@ hillwalker

See my edited post above....

Yes but what if he doesn't transfer before he gets paid interest, where will the interest go? He is saying when applying he doesn't get given the choice to have it paid into it.

Baldur

Lokolo wrote: »

Yes but what if he doesn't transfer before he gets paid interest, where will the interest go? He is saying when applying he doesn't get given the choice to have it paid into it.

It is added to the ISA, just like any other ISA the options are only if you wish to have the interest paid elsewhere.

See HERE > "Easy Access ISA General">"How & when will I receive interest on my Easy Access ISA"

Lokolo

Baldur wrote: »

It is added to the ISA, just like any other ISA the options are only if you wish to have the interest paid elsewhere.

See HERE > "Easy Access ISA General">"How & when will I receive interest on my Easy Access ISA"

Jeez. I know that, read my post above yours!!!!!

He is not being given the option

So what should he put? Leave it blank or what? - thats what the op is asking, what he should he do.