ISAs - Regulation Queries

ParkaMark

Hi all,

I am hoping someone can clarify for me exactly what the rules are for Cash ISAs. I'm probably best to explain my current ISA setup, so here goes.

Last year (after April 2007), I setup a standard ISA savings account with my bank. I saved to this during the tax year, ending April 2008.

So far, this tax year (after April 2008), I have not invested to this ISA at all yet.

So basically, I want to clarify what my options now are. My questions are simply these:

1) If I invest ANY amount at all into my current Cash ISA during this tax year, does that stop me from opening another ISA account with another provider?

2) Can I, just now, open another ISA with another provider and start saving to that instead? (leaving the current one as is)

3) If I do 2 above, does that mean I am then locked out of saving to my original ISA with my current bank for the remainder of this tax year?

4) Is it possible to have 2 ISAs open, with different banks, and say save half of my ISA allowance to one, and the other half to the other one, during a single tax year?

Hope someone can clarify.

Thank you.

Lokolo

1) Yes.
2) Yes.
3) Yes.
4) No. Has to all go into one ISA.

YorkshireBoy

1. No, but you won't be able to subscribe to the second ISA provider. You'll have to transfer your existing ISA to them first before making new deposits.

2. Yes.

3. Yes.

4. No.

ParkaMark

Thanks guys, but there seems to be uncertainty with point 1 - can someone clarify?

Basically, as far as point 1 goes, that boils down to these 2 options:

1a) I either open a brand new ISA, invest to that, and leave the current one alone for the remainder of this tax year

OR

1b) open a brand new ISA whilst also transferring my savings from my current ISA over to this new one, and then closing my current ISA (obviously using the proper ISA transfer method, so I don't lose tax benefits on already saved money). Then save to this new ISA as per usual.

Those are my 2 options for point 1, yes?

Other than that, brilliant - that's settled a lot of uncertainty in my mind now.

Thanks for your help.

Lokolo

Yes

But to transfer them you must not take the money out and put it in the new one. You must fill in an ISA transfer form with the new ISA provider.

And I said Yes to question 1 as I thought you mean deposit. There is nothing wrong with opening one with £0 balance, transfering.