Follow Us on Facebook Follow Us on Twitter Follow Us on Google+ Follow Us on Pinterest Follow Us on Tumblr Visit our YouTube Channel Subscribe to our Feed Subscribe via FriendFeed

Connect With Us

Can I Top Up the ISA I Opened in 2009

by Jim ONeil on May 15, 2011

in ISA's Individual Saving Accounts

Much of this depends on the type of ISA you have and how much money is being invested. If you are contributing to a variable rate ISA, the extra contribution should be okay. If the ISA is a fixed rate, it is unlikely any further contributions will be possible.

In the current year, a person is permitted to put an additional £10,200 into their account, however, only half of that investment may be put into a cash ISA.

Actually, you may be better off transferring the previous ISA into a new account that is opened up this year. Again, this will all depend on the type of ISA and the interest rate that has been secured. Interest rates are a bit higher now, which is why we are recommending transferring the old balance to a new provided to take advantage of the better rates.

The term of the account is another consideration. Most institutions will offer a higher rate of interest for a longer term. Locking up the money for longer periods can be a concern depending upon your forecast of the economy.

There are isa accounts that are now offering interest rates slightly over four percent, higher for five year terms. This is a very attractive option if the long-term commitment can be made.

Comments on this entry are closed.

Previous post:

Next post: