Opening new Cash ISA before old one matures

sheffieldeagle · 6 March 2018 at 2:41PM

Hi

I'm looking to open a Tesco 1 YR fixed Cash ISA but my current ISA does not mature until the 06/04/18. I want to open ASAP as it seems a good rate but not sure if I can before existing one matures. I know you can't 'fund 'two separate ISAs in the same tax year but can I open s second and ask Tesco to transfer on the 06/04/18?

Many thanks

Alexland · 6 March 2018 at 8:39PM

You can open as many Cash ISAs as you want but you can only contribute new money into one per tax year. If you are transferring from one ISA manager to another this doesn't count as a new contribution.

sheffieldeagle · 8 March 2018 at 4:58PM

Thanks for that much appreciated.

Plus · 8 March 2018 at 6:07PM

Quite often ISA providers have unclear wording that make you agree that this is your only ISA this year or something. It is no problem to open an ISA with £0 and then send in a transfer form - you just need to avoid anything where they ask you to deposit cash from your bank account or debit card.

Most ISA transfer forms have a box where you can say whether you want to withdraw now, risking a penalty, or wait until the old ISA matures, so it shouldn't be a problem to submit this early and wait for maturity.

sheffieldeagle · 9 March 2018 at 3:25PM

Thanks for the added detail. That really helps clarify my thoughts.

Cheers

Opening new Cash ISA before old one matures

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