One thing which puzzles me (at this moment anyway!) regards ISA's and the interest payments. What's to stop me holding my money in one account earning interest all the year round then moving that money into the ISA and getting the interest just before the financial year cut off point? Seems to me you could earn interest twice with the same money?
Thanks
Nothing to stop you doing that............But, you'll will only get interest paid for the number of days the money is in the ISA. So if you put it in there say on the the 5th April you will just get 1 days interest, ie FA.
As we are on the question of potentially daft questions... : )
Say this tax year I have my 3k in my mini-ISA and have had it in all year and I get my 162 interest (for the sake of the argument on the 6th April put into the account) and the next tax year I stash in a further 3k on day 1 of the new tax year - at the end of the next tax year do I get the full tax free interest on the total of 6 162 or do I get tax free interest on the
3k I've paid in and then only get net interest on the "old" 3162?
I've made some assumptions, but yes you get full tax free interest on the whole investment. Under current rules interest on the investment in future years remains tax free, not just in the year you made the investment.
You get tax free interest on the whole lot.
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