Isa`s

[gouldthorp]

this is probably a silly question but can someone tell me if i can carry on paying into an isa the folowing year after using the allowance for the previous year or does one have to get a newCASH isa?

[campbellking]

You can, but check out what rate they're offering as frequently the first year has a bonus rate on it, and the interest rate can drop dramatically

[factor-fiction]

You can carry on or open another or transfer one to a new one- it's your choice. But you can't contribute to 2 separate ones in the same tax year

[Gizmonster]

It's not a straight forward yes or no answer - it all depends. I've got an ISA that's fixed for 3 years and in that time, I cannot add to it .... it's all part of the terms and conditions of the ISA.
If it's a variable rate ISA, then I'd guess that you'd be able to add to it. If it's a fixed rate for a fixed term, then it's quite possible that you might not be able to add to it - you'll need to ask your provider for a definitive answer.

[factor-fiction]

...although, Gizmonster, whether her current ISA is for a fixed term or not doesn't have any bearing on whether she can open a new ISA next tax year if she wishes, so long as she only contributes to one next year

[Baldric]

He not she ff, check profiles and other posts

[Peter Pedant]

You can but check the the ISA from last year, the interest hasnt gone down to a crappy 0.1%

[BlueToffee]

The rates are so low at present I would suggest a Santander 123 account, pays 3% gross, 2.4% nett, on balances of up to £20,000. Currently better than most ISA's.

[Gizmonster]

Just remember with the Santander account, that you get nothing on balances up to £1k, 1% on balances £1k - £2k, 2% on balances £2k - £3k and 3% on balances £3k - £20k .... so if you don't put much more than £3k in, the effective rate is quite a bit less than 3% .... plus there's a £2 per month charge .....

[pixie373]

I have a fixed ISA which i can top up, but can't withdraw without losing interest. If you have online banking, look up your own ISA and it will tell you how much you can put in and all the terms and conditions.

[New Judge]

And with the Santander 123 account you must pay in at least £500 a month, set up at least two direct debits and pay £2 a month fee. You do also get "cashback" (either 1%, 2% or 3%, depending on the payee) on many household bills.

[josadler7]

Yes you can - pay in the max you can (to the yearly limit) and never take it out unless it's a last resort - i.e. see it as a pension. That way you keep the tax free interest capability forever. You can transfer from provider to provider whenever you want (to get the best rate)

[Sipowicz]

Gizmonster, the 123 account pays 3% on the whole of the £20,000, not just from £3,000 > £20,000. The £2 monthly charge is more than covered by the cashback. I get £53+ per month, after the charge! (I don't pay tax)