ISAs Guidance

I am a little bit confused about ISAs and how they work. I currently have ISA savings account with HSBC where I’ve put in the max amount of £20K that’s allowed in a year. Over the year the interest has accrued on it and I have two questions regarding this

  1. If due to the interest on the savings it has become, let’s say £20,100 - Does this mean the government now considers me as going over the limit and will tax me on the interest I’ve gained? i.e on the £100 for example

  2. Also, I understand that each year there is an ISA allowance limit. Does this mean I can keep the £20K allowance from the 18/19 in the existing ISA account, then let’s say for the 19/20 year when Monzo introduces cash ISAs I can start putting money into that? or do ISAs work in a way wherein one given year you can only have £20K tax free savings?

No deposits only interest doesn’t count towards your totals

Every year you can invest 20k into an ISA.

If you invest 20K in an ISA, the following year you can invest another 20K into an ISA (Taking the total to £40k - and so on each tax year.) This is irrelevant of supplier it only counts as ISA type.

So you can open one Cash ISA/ S&S ISA and a IFISA in the same year. The total amount invested into all of these cannot exceed £20,000 in total.


This helps a lot thank you so much! First time using the monzo community and it’s already proving to be so valuable and insightful :slight_smile:


Just a quick question, I have a Lifetime ISA and planning on buying an house in next couple of months.

The Lifetime ISA lets you deposit £4000 a tax year, I max out this year and have £4000 in my Monzo Pot for next year (tomorrow).

Does the tax year start at midnight tonight? I have an appointment with the bank tomorrow and would like to deposit tonight so it’s all together tomorrow

the tax year ends midnight from my understanding.

Keep in mind that you will not receive the LISA bonus right away and will receive it within the providers declared dates. Usually between 1-3 months after the deposit. Skipton for example for payments made between the 6th-5th of the month (6th from month 1 - 5th of month 2), and will pay the bonus on within two weeks of the 20th of the second month. So If you deposit on the 6th, you could be waiting until the end of next month for the bonus.

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Thanks, yeah I’m aware of that and the house we are buying will be ready early June. So on advise we
started the process now, so conveyancer etc can do there bit

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Personally, id just put it though early morning, payments go though in a couple of hours these days and you’ll be well within the new tax year.

The appointment is at 9am and I’m not an early morning person, look like death/feel like death

Might not be the best time to have an appointment with the bank manager then :grimacing:

I know, not sure whose idea it was. I’d rather be poked in the eye then get up in the morning on a day I’m not working till 4pm :confused:


Typical :frowning:



Really helpful description of the basics are here: