ISA Interest?? Now or next year?

Question

If i invest 1500 into an ISA now, before the end of the tax year, do I get a full years of interest added to it in April or, do I have to leave it there for a year. May be a stupid question, but I do not understand the things.
Thanks

Answer 1

Interest is paid only for the time that you have your money invested, so you will only get the three weeks' worth of interest for the remainder of this tax year. However, presumably you're going to keep it in the ISA once it's there, so it'll carry on earning interest into the 2007/8 tax year.

The advantage of putting your £1,500 in now is that you use your tax-free investment allowance for this tax year before it ends (once it does, you've lost the chance). Then you can invest up to £3,000 more during the tax year that starts on 6 April (or £7,000 if you're investing in a stocks-and-shares ISA).

Answer 2

Putting in £1500 before the end of the tax year will only entitle you to interest for this tax year i.e. some three weeks. You might, if you have not used up your allowance for the tax year, want to put it in now and then my advice is to put £3000 in at the commencement of the next tax year and get the full year at ?% This is the Cash ISA but you might want to speculate on the Linked ISA where you could invest up to £7000 in April.

Answer 3

interest is paid on a daily basis for he investment you have so in effect you will get from now till the 5th April.
If you leave it in the ISA you will get a full years interest 5th April 2008.
The only advantage of investing now is that you will have next years total investment allowance of up to £3000 you can invest for the next tax year to add to what you have already invested.