Get more from your cash ISA

A cash ISA should be the first home for your savings, but it's important to get the right account for you. In the first of Moneywise TV’s three-part ISA series, Johanna Gornitzki explains how this tax-efficient savings vehicle works and to get the best return on your money.

Your Comments

My bank Royal Bank of Scotland has told me that I can have a cash ISA with them in this tax year as well as already holding a cash ISA with Nationwide. I thought you cold only hold one cash ISA provider per tax year.

Please confirm

I believe, if you already have a cash ISA with another provider ie one taken up in 07/08 or earlier. then as long as you haven't used up any of you ISA entitlement for 08/09, I.E. you have not added to your ISA with the Nationwide in 08/09. Then you can open another ISA with any financial establishment to use up your ISA allowance for 08/09.

Some banks wont allow you to transfer previous year ISA funds from one provider to another, though, if they have a special rate. You can open one CASH ISA in any given Tax year & deposit upto the £3600 allowance.

You could open a new Cash ISA with a different provider in each Tax year, so in theory, by now as ISA's have been going for several years, you could hold numerous ISA's with different providers, each with one year ISA allowance, either the £3000 allowance+ the interest accrued, as it used to be, or £3600 +the interest accrued.

I have money invested in the "Presbyterian Mutual Society" in Northern Ireland,I allowed my interest to be reinvested each year, this society is now in the hands of an administrator and no one can get at their money. I have just received a bill from the Inland revenue telling me I owe them income tax for the interest received, I did not receive a tax form over the last three years so I am billed for three years income tax on the interest. I have lost my capital and all the interest which was added on over the last ten years. What can I do?

Is there any point in having a isa the interest rates are at a all time low most banks under 3per cent and yet you can get bonds that pay more than this and fixed for up too 4 years even as a tax payer it pays to look around and see whats on offer as in todays current climate you are being penalised for holding isa .