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Posted Sun, 07 Apr 2024 11:17:50 GMT by SR
Hi. Is the amount of money in an ISA that can earn interest capped at £20’000? So if a person puts £20’000 in an ISA and after 5 months £500 of interest has accrued, is further interest earned on the whole amount of £20’500 or just the initial £20’000?
Posted Wed, 17 Apr 2024 10:40:47 GMT by HMRC Admin 32

The maximum you can deposit in the ISA is £20000. Any interest that accrues remains in the account (unless you take it out) and is tax free. In this way, the balance can exceed £20000, but the amount deposited does not.

Thank you.
Posted Wed, 17 Apr 2024 11:11:44 GMT by SR
Hi. Thank you but you haven’t answered the question. My question is not about how much money can be in an ISA, it’s about how much money in an ISA can actually earn interest. Please could you read my question and give an answer. Many thanks.
Posted Tue, 23 Apr 2024 13:41:35 GMT by HMRC Admin 5

I cannot find your original question. However, all the funds in a cash ISA should be earning interest. Any doubts on this should be taken up with your provider.

Thank you

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