Cash ISA's few Questions?

rare · 7 Oct 2009 at 14:28

Guys, couple of questions which some of you may know of the top of your head

I have been saving £200 a month in to a cash ISA. Now as I understand it they have a maximum of £3600? Early next year I will reach this limit. What happens then? Will the money I have going in to my ISA be placed in to another account? I assume that once the £3600 is reached I can no longer save any more money in to this account.

jamief · 7 Oct 2009 at 14:30

You get £3600 per year.

ran_out · 7 Oct 2009 at 14:32

The £3600 i think is a yearly limit, not sure if it's by calender year, tax year or rolling 12 month period. But after that time you can continue to add funds to it up to the limit for that year. Also any monies removed from the account are not removed from the limit that you can add to it in a year.

rare · 7 Oct 2009 at 14:35

Thanks guys

I knew my knowledge of my own account was poor! That means I can save as much as I like so long as I never save more than 3600 a year?

platypus · 7 Oct 2009 at 14:38

You can save up to £3,600 in a cash ISA per tax year.

Any withdrawal from your ISA does not allow you to reinvest it.

jamief · 7 Oct 2009 at 14:38

rare said:
Thanks guys I knew my knowledge of my own account was poor! That means I can save as much as I like so long as I never save more than 3600 a year?

Yep.

You can of course save more than £3600 per year elsewhere (non-ISA accounts) which will be taxable.

Also note that from 1/4/10 the limit for cash ISAs will be going up to £5100.

Knubje · 7 Oct 2009 at 14:40

I think the amount is being raised for pensioners (over 60's) by £1500 very soon if not effective now. Everyone sees this come 1st April I believe.

I'm sure I have read this somewhere and thought "Yes, can save more money in my ISA as of next year". (Beaten by Jamief above)

And yes, once you reach the £3600 you cannot put in any more until the next financial year. Mine's sat on 10.8 now, just a shame it will all be going soon to the evil mortgage lenders!

ran_out · 7 Oct 2009 at 14:41

I just read that from April 6th 2010 the limit will be raised to £5100 which is the level that over 50's are currently allowed. It runs by tax year.

rare · 7 Oct 2009 at 14:42

Thanks guys, all very helpful answers!

Admiral Huddy · 7 Oct 2009 at 14:44

Very slightly off topic. Does anyone know where you enter the interest recieved for cash ISAs on your online return? If I put under the interest received section, the calculator decucts tax. The helpdesk aren't very helpful.

goneawol · 7 Oct 2009 at 14:44

Knubje · 7 Oct 2009 at 14:50

Admiral Huddy said:
Very slightly off topic. Does anyone know where you enter the interest recieved for cash ISAs on your online return? If I put under the interest received section, the calculator decucts tax. The helpdesk aren't very helpful.

I have the same problem on my online banking, it's with Natwest. I don't see the interest returned for some reason and have to look at official statements.

Meh, who knows.

stoofa · 7 Oct 2009 at 14:58

With an ISA can I also suggest that you make sure the interest you get from the account is paid back into the ISA.
The interest you gain does not count towards the yearly limit, so you can in effect go over the £3600 for the year and of course it's then compound interest.

Admiral Huddy · 7 Oct 2009 at 15:27

Knubje said:
I have the same problem on my online banking, it's with Natwest. I don't see the interest returned for some reason and have to look at official statements.

Meh, who knows.

Sorry this is for the HMRC.

jamief · 7 Oct 2009 at 15:46

stoofa said:
With an ISA can I also suggest that you make sure the interest you get from the account is paid back into the ISA.
The interest you gain does not count towards the yearly limit, so you can in effect go over the £3600 for the year and of course it's then compound interest.

Thats a good way to do it.

I have a few ISAs from years gone by that just sit there compounding each month. Until, of course, the end of this month when I'm moving house and they will all be wiped out

Energize · 7 Oct 2009 at 16:20

Admiral Huddy said:
Very slightly off topic. Does anyone know where you enter the interest recieved for cash ISAs on your online return? If I put under the interest received section, the calculator decucts tax. The helpdesk aren't very helpful.

I don't really think you need to bother as it isn't taxable.

Admiral Huddy · 7 Oct 2009 at 16:24

You have to declare all income whether it's taxable or not.

Energize · 7 Oct 2009 at 16:25

Admiral Huddy said:
You have to declare all income whether it's taxable or not.

That's what I thought but I was told when applying for a student loan not to bother with isa income and the like.

Guv · 7 Oct 2009 at 18:08

Admiral Huddy said:
Very slightly off topic. Does anyone know where you enter the interest recieved for cash ISAs on your online return? If I put under the interest received section, the calculator decucts tax. The helpdesk aren't very helpful.

You don't put interest received from an ISA on your self assessment return.