I'm a little confused by thw whole ISA thing for each tax year. I currently have an ISA with the maximum £5340 in it. This was opened this tax year (2011/12), having transferred some of the money from an old NatWest ISA (originally opened in 2008/9) that was giving me a rubbish interest rate of 0.05%, into one with a much more decent interest rate of 3.05%.
My question is this: when the new tax year starts in a couple of days, how do I go about saving then? Am I allowed to -
1. Put another £5640 into <u>the same</u> ISA over the year as that is the 2012/13 allowance max? Or,
2. Do I have to open up a new ISA if I want to make any more tax free savings, and put up to £5640 in the new ISA? Or finally,
3. Am I only allowed to save another £300 (5640-5340=300) in the original ISA?
Many thanks in advance moneysupermarketers, as I'm sure I'm not alone in this confusion and any help would benefit me and hopefully a few others too.