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  • jackeline
    jackeline Posts: 1 Newbie
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    If I have already put 500 pounds in an ISA account with a bank, and I found out another bank offers better rates. Can I open another ISA account with another bank and invest there the rest of my year allowence? Or do I need to first close the first ISA account with the first bank?
  • Baldur
    Baldur Posts: 6,565 Forumite
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    You certainly can't open and subscribe to two Cash ISA accounts in the same tax year.

    There is, however, provision in the HMRC guidance for permitting a new ISA where 'self transfer' has occurred.

    You would have to completely close the first ISA account before opening & subscribing to the second one.
    12.32 However, where
    • the investor subscribes to two cash ISAs, in the same tax year, and
    • subscriptions to the first ISA subscribed to were valid, and
    • the first ISA subscribed to was closed (see paragraph 12.33) before subscriptions to the second ISA were made the subscriptions to the second ISA may be valid (see paragraph 12.32a).
    12.32a The first cash ISA to be self-transferred in tax year is valid, and need not be
    repaired.
    The second (and any subsequent) self-transferred cash ISA is not valid and is not
    eligible for repair.
    12.33 An cash ISA is closed for this purpose when all the funds held in the ISA are
    withdrawn (including any subscriptions for earlier years) and no further subscriptions are made to the ISA in the same tax year.
  • aidnolan
    aidnolan Posts: 37 Forumite
    First Post First Anniversary Combo Breaker
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    I am currently in the process of transferring my ISA from RBS to a Nationwide e-ISA and was wondering whether it is acceptable to open an A&L Flexible Cash ISA at the same time? My plan is to transfer the ISA money I have saved and keep it in the Nationwide account, not adding to it in the new tax year, instead using the A&L ISA for any new money.

    If I don't put any 2010/2011 money in the Nationwide ISA when the transfer is complete does that mean I can open the A&L ISA now as long as I don't put any money in that account until after 6th April?

    Apologies if any similar queries to this have been answered previously

    Thank you for your help
    :)
  • rb10
    rb10 Posts: 6,334 Forumite
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    aidnolan wrote: »
    I am currently in the process of transferring my ISA from RBS to a Nationwide e-ISA and was wondering whether it is acceptable to open an A&L Flexible Cash ISA at the same time? My plan is to transfer the ISA money I have saved and keep it in the Nationwide account, not adding to it in the new tax year, instead using the A&L ISA for any new money.

    If I don't put any 2010/2011 money in the Nationwide ISA when the transfer is complete does that mean I can open the A&L ISA now as long as I don't put any money in that account until after 6th April?

    Apologies if any similar queries to this have been answered previously

    Thank you for your help
    :)

    Have a read of the ISA FAQs. Whether you can pay money in to A&L now depends on whether or not you've paid any money in to any ISA since 6th April 2009, as covered in that post.
  • Genny_2
    Genny_2 Posts: 43 Forumite
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    aidnolan wrote: »
    If I don't put any 2010/2011 money in the Nationwide ISA when the transfer is complete does that mean I can open the A&L ISA now as long as I don't put any money in that account until after 6th April?

    I’ve opened the A&L Flexible Cash ISA in preparation for the 2010/2011 Tax Year. And my Halifax Direct Reward ISA is due to be moved to a Halifax Fixed Rate ISA which will not have any more payments to it.

    So one ISA will be 2009/2010, the other 2010/2011, and I won’t have paid into both in the same tax year.

    When you fill in the online application for the A&L Flexible Cash ISA a message will be displayed “If you intend to fund your ISA for the 2009/2010 tax year your funds must reach the account before 5th April 2010”

    So, they’re not stating that you have to fund the account right away. I’ll be waiting until 6th April


    Hope this helps you, Genny
  • BugsWabbit
    BugsWabbit Posts: 3 Newbie
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    FYI, I contacted my local A&L to clarify a couple of points regarding my own ISA funds after being given good advice by Baldur on my current situation.

    Take it or leave it, he told me that this good rate for the 09/10 year is very likely to be available for the new 10/11 tax year, as it's only been available for the last couple of weeks or so.

    I would hope that this is an experienced opinion and it will indeed be the case....
  • Lifeisabeach_2
    Lifeisabeach_2 Posts: 10 Forumite
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    Santander, or A&L, 2.75% AER ISA
    Your main site states that there is a bonus of 2.25%. Stating that after a year this will drop to a variable rate of 0.5%.

    On the A&L site the rate AND bonus are both variable? Whats to stop them reducing the bonus next week.is this correct. I Dont trust em!
  • Baldur
    Baldur Posts: 6,565 Forumite
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    Lifeisabeach wrote: »
    Santander, or A&L, 2.75% AER ISA
    Your main site states that there is a bonus of 2.25%. Stating that after a year this will drop to a variable rate of 0.5%.

    On the A&L site the rate AND bonus are both variable? Whats to stop them reducing the bonus next week.is this correct. I Dont trust em!
    People can't just expect to read a description of a financial product on this or any other website without reading the product provider's own Terms & Conditions. The items on the main site are merely pointers to what's available.

    The same 'caveat emptor' applies to all financial products.

    Santander/A&L's marketing department(s) have a history of headline-grabbing rates that have potential 'catches' for the unwary.
  • MigsyBigsy
    MigsyBigsy Posts: 190 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
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    Hello All,

    as its coming to the end of the financial year, there really isnt alot of choice out there regarding ISAs.

    The only option I have is the BM ISA Extra, as I cant open a Santander as I have old ISA cash nor can I open the Barclays as it wont allow transfers.

    Will there be new products coming out in the next couple of weeks or is this it?

    Thank you
  • Lifeisabeach_2
    Lifeisabeach_2 Posts: 10 Forumite
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    BALDUR
    Thank you for your reply.
    Whilst I accept that one needs to read the providers terms and conditions, the point I was trying to make was that Martins site is misleading on this occasion.
    You have it as number 2 in the list of top rate accounts.
    MSE also states, and i quote....
    "....... after a year this will drop to a variable rate of 0.5% AER. At this point it's vital you check your rate, then ditch and switch to a new top payer if you're losing out."
    This implies that the bonus is fixed for a year, which it isn't.
    Great site, but this is misleading I think and needs to be reworded.
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