ISA interest?

mario2004

mario2004

mario2004

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Joined
23 Sep 2003
Posts
254
This may be a stupid question but anyway....

I don't know too much about ISA's. Virgin Money website says that there are only 9 days left to invest in this years ISA. So does that mean if I transfer money from my bank account (under £3000) to a Virgin Money ISA before the deadline, I will get the full years interest on that money?

For example, if I put £1000 in with a VM ISA, in a few days after 5th April, that money will have matured into £1049 (the rate is 4.9% AFAIK). And it is free for me to withdraw that money back?

Sorry in advance if this is a silly question.
 
Nope, you'll probably just get a few days interest. Possibly a month if you're lucky (?) Depends how the interest is calculated.

The reason they say there are only days left is because once the new tax year starts you've lost your entitlement to this years £3000 ISA thingy. If you fill up your ISA for this year you will then be able to put another 3600 in next year, whereas if you wait a few days you'll only be able to put that 3600 into tax free savings, while the rest will have to be taxed.
If you withdraw money you have lost that amount from your allowance for the year. i.e. if you put in the full £3000 and then withdraw 1000, you can't put another 1000 in. Whether or not there are any other penalties for withdrawing money depends on the ISA. Most ISAs listed as an instant access won't have any other penalties
 
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