East Access Cash Isa

[chrissa1]

I opened an Easy Access Cash Isa just before April this year. I have had to dip into it since then.

My question is: Can I top it back up to the £5K odd tax free maximum? Can you have more than the tax free amount in it, obviously the overage amount being taxed?

[factor-fiction]

Once you have deposited the maximum tax free amount for the year you cannot add any more, even if it's to replace some you've taken out.

I think that if you exceed the amount the account could fully lose its tax free status but when i did this by accident once the building society didn't add the money to my account and simply returned the excess it to me

[chrissa1]

*East*, I ask you!!!

Thanks f-f. I opened it with £1K and dipped into approx half. Have I shot myself in the foot or can I add money to make it £5K odd again?

[Yorky Lass]

If you opened it before this years tax year then you should still have this years full allowance left to deposit.
You can put a years allowance in every year. So next year you can add another £5k, or whatever the allowance is next tax year.
Hope that makes sense.

[Connemmara]

for yorky - I changed my cash ISA to a current 123 account - because ISA interest was 0.5%

[Connemmara]

sorry yorky that answer was for chrissa1 ooop

[Boto]

For this current year 2013/14 you can put £5670 into a cash ISA. If you put the £1000 in before 6/4/13 you still have £5670 that you can save in it. If, e.g you put in £2000, take out £1000 you can still put in £3670 for this year. You cannot put back the £1000. When I made a mistake and transferred too much they just refunded it.

[Yorky Lass]

Conne, you should always shop around for a new Isa at the end of the year. No matter what interest rate are they always reduce to sod all.
I was lucky and managed to get a Leeds one this year at 2.5% before they withdrew it after 2 days. It was rather popular can't imagine why.

[Connemmara]

I have online account with said ISA ie I think 43p - just to keep it open and just leave all my money with current account. This is what the guy in Santander told me. They said the ISA was 0.5% also too 2.5% isn't that great either - sorry to chrissa for a tangent - for eg I wanted to go back to Cash ISA - what would you suggest for me to do. What is highest interest rate anyway for ISA Thanks for whatever you say.

[chrissa1]

So, technically you could keep putting money in, take some out and as long as the account doesn't go over the £5,670, it doesn't get taxed?
That doesn't sound right.

[chrissa1]

Don't worry about the tangent Conne. Any info is gratefully received.

[237SJ]

No, you can`t physically put more than £5670 per year. So for example, if you put £1000 in and then took it out, you can only pay in £4670 for the rest of that year. It`s not about the balance as such, it`s about putting in £5670.

[237SJ]

Sorry to interrupt - Conne, Santander rates are terrible now. They used to be OK. You won`t get more than 2.25% in an ISA. Nationwide seems to be the best at the moment or go for one that doesn`t have an annual bonus and then you don`t have to keep changing when the rate drops. Santander are dire to deal with as well. I couldn`t wait to get my ISA away from them

[chrissa1]

Ahhh, that makes sense 237sj. Thanks.

[Boto]

As long as you don't put IN more than £5670 this year you'll be ok. The ISA provider won't let you put more in. All the money in an ISA is tax free.

[granny grump]

You can only put in £5670 in any one year - if you put in £1K and take out £500 you can only put in a further £4670 within the tax year - you cannot put back the £500 you have taken out and then put in a further £4670

[chrissa1]

I get it now. That does make sense, gg and Boto. Annnd, you are only allowed ONE Cash Isa, yes?

[Yorky Lass]

It's not the account that can't go above £5670 it's no more than £5670 can be deposited in one tax year. Next year if you are keeping the account then you will be able to deposit another full allowance.
Take note of my previous post and watch your interest rate it will no doubt reduce to nothing worth having.

[Connemmara]

237 I have numerous complaints re Santander myself - but will be able to sort things out bit better when I complete finish off my mortgage End August /September. I have another £8,000 in an ISA but it in the one with no stock or shares etc. Just as long as I get my own money back. As I say one thing at a time - get rid of mortgage but will look into that £8,000. Thanks 237 and chrissa for letting speak on you personal site - sorry Conn

[Baldric]

//Thanks 237 and chrissa for letting speak on you personal site/// . . . ????

[Boto]

You can have more than one ISA but can only open one in any year. E.g. you could open one in 2012 and then again in 2013 but you can't put any money in both. If you find a decent rate you can transfer money from previous years to a current one. I hope you understand that, I don't think I have explained very well.