Each tax year you can pay a certain amount into an ISA. A tax year runs from 6 April to 5 April the following year.
You can pay into any of the ISA(s) you hold in each tax year, as long as you don't go over your allowance.
For the 2018/19 tax year, the annual ISA allowance is £20,000.
Nationwide offers cash, Stocks & Shares** and Junior ISAs (where there is an annual allowance of £4,260). You can also save into an Innovative Finance ISA or Lifetime ISA (with an annual allowance of £4,000), although Nationwide does not offer these products.
Your ISA allowance is how much you can add to ISAs during the tax year. It's not a limit on your total balance. This means that:
- Over a number of years you can build up your savings to much more than the annual allowance
- ISA flexibility means that if you withdraw money from your cash ISA, you can replace it (subject to the terms and conditions of your account) within the same tax year, without it counting towards your annual ISA allowance. Replacement money has to be paid into your cash ISA in the same tax year as it is withdrawn, otherwise your annual ISA allowance will be impacted.