# Reached my ISA limit...apparently.



## T.D.K (Mar 16, 2011)

So last month I had £5,000 in my ISA account with Nationwide.

I was a bit naughty by buying a PlayStation Vita and car cleaning supplies so had to withdraw £400.00 from the ISA.

I was paid yesterday so wanted to replace what I had taken out.

It allowed me to put £300.00 in, taking it to £4,900 but anymore and I get a 'you have reached your annual ISA limit' message.

I have another savings account but I treat that as a emergency fund.

I'm not really sure what I have done wrong - any thoughts?

It seems ludicrous that you have a limit on how much you can save tax free as I've paid tax and N.I on the money I've earned anyway.


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## empsburna (Apr 5, 2006)

It is a subscription more than a savings account.

I would think of it as a tax free place to store money that pays some interest. 

You can save some in a Stocks & Shares ISA (most places offer these) taking the total up to (IIRC) £11,200 for this tax year but I would look at that as more of a mid/long term investment (can go up or down).


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## Natalie (Jan 19, 2011)

I don't really understand it all tbh I always find Martin Lewis' site helpful for things like this though 
http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax


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## Beancounter (Aug 31, 2006)

Current 'Cash' ISA limit for the year April 2012-April 2013 is £5,640.
This means you can put in up to that amount. If you withdraw any, you cannot simply add it back, unless your contributions are less than the limit.

Eg, Put in £3,000 - balance left to increase ISA in 2012/13 £2,640.
Withdraw £1,000, you can still only add £2,640, so it does not take into account thew money you have withdrawn. Make sense ?

Limits will always be imposed on tax free savings. There are other efficient things to do, like sticking money in a non workings wifes name (using her personal allowance ), offset mortgages, overpaying etc :thumb:


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## Jonny2400 (May 14, 2011)

Beancouter is spot on. The current Isa allowance is £11280, of which up to £ 5640 can be credited to cash based assets. 

In future use your other deposit based account for short term capital access. Only with draw from your ISA if you dont have enought to meet your requirements !

Limits are needed to ensure fair use of these tax saving plans, as saving earn interest that interest is classed as unearned income and is taxed inline with your yearly earnings.

One of the best methods over and above your full ISA allowance is to consider plans that make use of capital gains exemptions, however this type of plan are normally longer term accounts


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## T.D.K (Mar 16, 2011)

Thanks for the replies.

My own fault for withdrawing from the ISA.

Still £4,900 in the ISA and £300 in the other savings account is better than nothing.


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## Lewisredfern001 (Apr 21, 2011)

should you not just call the bank?

this is the worst 'ive got £5000 in the bank' thread ever!!


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## T.D.K (Mar 16, 2011)

Lewisredfern001 said:


> should you not just call the bank?
> 
> this is the worst 'ive got £5000 in the bank' thread ever!!


Not sure what you mean...

I was just looking for help here as I know a few people in this section are pretty clued up things like this as I don't really know how ISA's work.


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## Xploit (Nov 16, 2011)

T.D.K said:


> Not sure what you mean...
> 
> I was just looking for help here as I know a few people in this section are pretty clued up things like this as I don't really know how ISA's work.


Why do you have it if you don't know how it works?


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## Lee.GTi180 (Apr 28, 2010)

Xploit said:


> Why do you have it if you don't know how it works?


Understand how your car/tele/computer/central heating (delete or substitute as appropriate) etc etc etc works?


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## ITHAQVA (Feb 20, 2011)

Lewisredfern001 said:


> should you not just call the bank?
> 
> this is the worst 'ive got £5000 in the bank' thread ever!!


:thumb:  :lol::lol:


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## SteveyG (Apr 1, 2007)

T.D.K said:


> I'm not really sure what I have done wrong - any thoughts?


Gooooood afternoon Sir,

For me to help you with the problem with your monies, can I first have your bank account number and sort code pleassse


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## T.D.K (Mar 16, 2011)

Xploit said:


> Why do you have it if you don't know how it works?


I just wanted a better interest rate than my normal savings account, Nationwide advertised a good-ish rate on the internet banking page so I signed up.


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## Tricky Red (Mar 3, 2007)

In a cash ISA there is a maximum subscription limit per year. If you subscribe the maximum and draw it all out in the same tax year, you cannot add back to it. The funds are not infinitely replaceable.


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## Bero (Mar 9, 2008)

As above - there is an annual limit (£5640 2012/13) to how much you can pay in per year, this takes no account of withdrawals.

i.g. If you pay in £5600 on April the 10th then withdraw £5600 on April the 12th you are still limited to to paying in £40 for the rest of the tax year; as you can only pay in a maximum of £5640 per year.


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## 2157R (Mar 19, 2012)

T.D.K said:


> I just wanted a better interest rate than my normal savings account, Nationwide advertised a good-ish rate on the internet banking page so I signed up.


Be careful that the good rate isn't an introductory rate. Many places drop to 0.1% (or something equally miniscule) after 18 months and hope that the customer doesn't notice.....


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