How Many Isa's Can One Person Have

jbherts
jbherts Posts: 2 Newbie
in ISAs & tax-free savings
I'm very confused at the number of ISA's one person can have, i thought it was just one putting in up to the maximum allowance each year, but my in laws inform me they have two each, two with 3000 and two with 3600, all with barclays! surely they should only have one each with 6600 then add up to the max in next year, i would be gratefull if someone could help as they are both in their 80's and i dont want them to start worrying, many thanks
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Comments

  • talana
    talana Posts: 1,077 Forumite
    Each person is allowed one cash ISA per year.

    You have the choice to open a new one each tax year, or keep many years worth of contributions all in the same ISA (or some option in the middle of the two)
  • Milarky
    Milarky Posts: 6,355 Forumite
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    talana wrote: »
    Each person is allowed one cash ISA per year.

    You have the choice to open a new one each tax year, or keep many years worth of contributions all in the same ISA (or some option in the middle of the two)
    Going the other way, after the current year has passed, there is then no limit to the number of ISAs one may apply to open since transferred funds from past years can be split (only this year's may may not be split up until 6th April) This can be handy for carpetbagging accounts with £100 with building societies that otherwise offer very poor standard accounts...
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  • jem16
    jem16 Posts: 19,397 Forumite
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    jbherts wrote: »
    I'm very confused at the number of ISA's one person can have, i thought it was just one putting in up to the maximum allowance each year, but my in laws inform me they have two each, two with 3000 and two with 3600,

    With those amounts it sounds like they have an ISA each for this tax year (08/09) containing £3,600 and an ISA each for last tax year (07/08) containing £3,000. This is perfectly possible.

    all with barclays! surely they should only have one each with 6600 then add up to the max in next year,

    Normally if it's with the same provider you would expect them just to add to it each year. Perhaps they have that and your in laws think they don't. Or perhaps they have simply opened another one?

    i would be gratefull if someone could help as they are both in their 80's and i dont want them to start worrying, many thanks

    If they are for separate tax years it's not a problem.
  • Crinz
    Crinz Posts: 181 Forumite
    im assuming they had last years 3k fixed for a term so couldnt add to it this year. As a result they had to open a new ISA to fund for this year.
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  • truescot
    truescot Posts: 170 Forumite
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    So the fact that I have an ISA which I opened about 6 years ago which has about £60 in it(!!) means I can't open another one till next year? As I have contributed to it this year.

    I am currently sorting my finances out which have been woeful, but I am now debt free and ready to start saving. Will I have to wait till next year to open another ISA. My current one is with BoS with a rate of 3.06%. Shocking!!

    Wait till April, check MSE for the best rate, deposit my allowance and repeat year after year?
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  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
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    Milarky wrote: »
    Going the other way, after the current year has passed, there is then no limit to the number of ISAs one may apply to open since transferred funds from past years can be split (only this year's may may not be split up until 6th April) This can be handy for carpetbagging accounts with £100 with building societies that otherwise offer very poor standard accounts...

    i thought the one new cash isa per year rule still applied to transfers i.e. if i have £10k in ISA 1, then i open ISA2 for this tax year and put £3.6k in, I cannot in the same year open ISA 3 and transfer the £10k from ISA1 to a new ISA 4, I could only transfer it to ISA 2.

    is this not the case?
  • boobbby
    boobbby Posts: 769 Forumite
    chewmylegoff wrote: »
    i thought the one new cash isa per year rule still applied to transfers i.e. if i have £10k in ISA 1, then i open ISA2 for this tax year and put £3.6k in, I cannot in the same year open ISA 3 and transfer the £10k from ISA1 to a new ISA 4, I could only transfer it to ISA 2.

    is this not the case?

    You can transfer any cash ISA to a new provider that accepts existing ISA's (not all do) you can even transfer the ISA2. What you can't do is put anymore money into a cash ISA this tax year !!
  • Chrissybh0y
    Chrissybh0y Posts: 364 Forumite
    I recently joined RBS and they opened up 2 ISA's for me one was a omline/telephone one and the other was the standrad one the government has given every person , i can stick 3600 a year i think in both, with no penaltys for takin any money out, dunno if that helps or anything lol
    Better to understand a little than to misunderstand a lot.
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    you can have as many as you want. just as long as the inland revenue don't find out
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  • Chrissybh0y
    Chrissybh0y Posts: 364 Forumite
    ad44downey wrote: »
    you can have as many as you want. just as long as the inland revenue don't find out

    If the inland revenue find out then what happens?

    and if there is a problem with having more then one then why do we get offered a few ?
    Better to understand a little than to misunderstand a lot.
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