Does Interest on Cash ISA count towards ISA allowance? - Community Forum (2024)

I opened an Cash ISA account with 20000 pounds, which is the yearly limit. At the end of the first month, I've earned ~20 pounds interest, and it's been paid into the same ISA account. Have I now exceeded my ISA limit because I have 20020 pounds in the account?

HiI opened a 1-year fixed term cash ISA account in the tax year 2023-2024. I was told I was to receive monthly interest by cheque since I did not have any personal account in that said bank. I understand any interest generated from an ISA account is tax-free. But in my case, I wonder how the tax-free is guaranteed if I deposit cheques to another bank (non-ISA account)? Does it mean I do NOT need to report my earned interest from the ISA account to HMRC? And theoretically, if the interest earned from the ISA account can be deposited into the same account (e.g. 100pounds interest earned) in 2023-2024 tax year and I get 20,100 pounds when the account matures, does it mean I can have a capital of 20100 + 20000 = 40100 pounds in a new ISA account opened in the next tax year?Thank you in advance for any reply

I understand that interest paid from an ISA does not count as paying funds in. Does that mean that if I, say, have a 3 Year Fixed Rate ISA that pays interest monthly then, rather than paying the interest into my bank account, could I ask for it to be paid into an existing easy access ISA account? IE So I have access to the interest from the Fixed ISA yet the interest on that remains tax free?

Hi
This is something you would need to discuss with your ISA provider.

Hi Sorry but can someone tell me what happens with the interest on an ISA. I have a fixed rate 2 year ISA and have accumulated one year’s interest? When can this interest be withdrawn without affecting the ISA as no withdrawals allowed within the 2 years of the fixed term? Is it only at the end of the 2 year period? Thanks

Hi,
That is between you and the provider.
Thank you.