Understanding ISAs

hougtimo

Hi,

I am 19 and run my own business, so I'm not an entire financial-noob.

I have a current account and ISA with HSBC (5.85%). Now I understand that you are limited to investing £3600 per tax year. When I get to the end of this financial year and I have invested the full £3600 can that be left in for the next tax year? Or do I have to withdraw it? From HSBC's bamf it looks like I can leave it in.

Supposing I leave it in and invest anothr £3600 in the next tax year will I receive interest only on what I have invested that tax year? Or would I receive interest on the total balance of my ISA?

Any help would be greatly appreciated!

Tim

whu

welcome to the site
if you add £3600 next year you will get interest on the full amount ie £7200 plus on the interest you make this financial year - would recommend that you check out the rates available next year incase they are better than HSBC and if they are and the new provider allows you can transfer this years allowance plus the interest to the new ISA and then add next years allowance to it as well

hougtimo

whu wrote: »

welcome to the site
if you add £3600 next year you will get interest on the full amount ie £7200 plus on the interest you make this financial year - would recommend that you check out the rates available next year incase they are better than HSBC and if they are and the new provider allows you can transfer this years allowance plus the interest to the new ISA and then add next years allowance to it as well

Thanks for confirming that

As for renewal next year, I am aware that HSBC are not the best from the view of interest rates, and will be doing some serious shopping around when the time comes.

Cheers again