Can I keep store money in an ISA over 12 months?

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  • Can I keep store money in an ISA over 12 months?


Answer #1 | 19/12 2013 08:20
You can leave the money in the ISA for as long as you want - there is no limit on how much can be in an ISA, just on how much you can put in during a single financial year. You can stick the maximum amount in each year, and let the total build up - you still qualify for tax free interest on everything in the ISA. If you want to keep the money in the ISA for several years it is worth applying for a fixed-term ISA. That measn you agree to leave the money in the account for two years (or sometimes longer) and therefore get a bit more interest than in an instant access account where you can withdraw the money whenever you like It is designed to encourage ordinary people to save regularly, rather than to allow millionaires to avoid tax - which is why there is the annual limit.
Answer #2 | 19/12 2013 08:29
There's a limit on how much you can put into an ISA. Apart from that, it's just like any other investment, except it's tax-free. There are ISAs that work the same way as an instant access account and you can take the money out as you want - you just can't put it back in again once you've used up your yearly limit. The idea behind ISAs is that you build up a large tax-free find by putting money in over a number of years. However, there's nothing to stop you taking it out again.

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