@cmundo Section 5.5 of the ISA terms document addresses scenarios where contributions exceed the annual allowance. It’s not related to any gains in your ISA.
Consider a Cash ISA with an initial balance of £20k. After a year, it accumulates £21k due to interest payments - interest will continue to be earned on the full £21k balance, facilitating compounding.
@IntInv Similarly, in an S&S ISA, if your initial £20k grows to £27k through your smart investment choices, and £22k worth of shares are sold, interest will be earned on the full £22k balance when held as uninvested cash.
Thanks for the clarification! I’m still a little confused as to what that line in the terms actually means but good to know there’s no cap on the eligible Cash ISA balance for interest.
I put £9k in a cash ISA with another provider since April and was planning to put £11k in my T212 S&S ISA over the next few months. However, the free share I got from a promo code added £12.78 to my account when I sold it and consumed some of my ISA allowance as a result. I have 3 questions:
Will your new cash ISA allow incoming payments of less than £1? (Unlike your S&S ISA)
Will the in app UI which displays my remaining ISA allowance consider the payment history of both types of accounts regardless of which account I’m viewing? (By history, I also mean the £9k I had already paid in my old ISA which I will transfer in)
Will the exact amount in my old ISA get transferred over to your new Cash ISA or will anything less than a pound get left behind?
The free share from the promo code has me worried I could accidentally go over my ISA allowance this year. A “yes” to all 3 of my questions would mean I’d have the best chance of avoiding this kind of mistake.
When are we going to learn about the launch date for the ISA, I have seen the press release but there is little in the way of information when this is going to commence?
Sorry I’m probably having a dumb moment but I don’t understand the cash ISA. Why? We get 5.2% interest in the S&S ISA so why would I want a cash ISA? If I simply wanted interest I could just leave my money as cash in the S&S ISA. What am I missing?
The S&S ISA is protected and the protection is limited for each institution thus (unless I’m mistaken) having both a S&S ISA and a cash ISA doesn’t actually change the protection
My understanding is that the pot invested in QMMF (specifically) is not protected against institutional failure in the same way as cash is. So cash in the cash ISA is very slightly safer.
Anyway, transferring in - exciting!
If I move money via manage funds from my Stocks and Shares ISA to the Cash ISA is it classed the same as an ISA transfer not effecting my allowance or does it just see it as normal funds that would?
I think you can? Moving in either direction seems to be working for me if I go to Manage Funds from within the S&S ISA. From the Cash ISA it doesn’t seem to let me.
