HSBC cash isa

g5604

Hi,

i have just opened a hsbc cash isa with a lump sum of £1000 and then monthly payments so by the end of the tax year i will reach £3600.

Does anyone know what happens next year? will i be able to do something similar or am i stuck with the monthly payments? Also does next years money go into the same isa or do you need to open a new one each year?

thanks,
Gareth

RayWolfe

Each years cash ISA stands alone. So next year you can keep adding to your current one or open a new one with the same or a different supplier and keep the current ISA is being or cash it in.
It is generally not a good idea to cash in ISAs unless you are desperate for the money.

Geoff_W

Be aware though, that if your monthly payments are automatic (Direct Debit, say), then if even one of these gets paid after 6 April 2009 you are stuck with only being able to carry on with your current ISA and provider (HSBC). That's because you will have started to fund the ISA for the 2009/2010 period.

So if you don't want that to happen you must cancel your monthly payments before the new tax year starts.

Geoff

sheslookinhot

Geoff_W wrote: »

Be aware though, that if your monthly payments are automatic (Direct Debit, say), then if even one of these gets paid after 6 April 2009 you are stuck with only being able to carry on with your current ISA and provider (HSBC). That's because you will have started to fund the ISA for the 2009/2010 period.

So if you don't want that to happen you must cancel your monthly payments before the new tax year starts.

Geoff

Good reminder Geoff, for those on direct debit