Question re ISA allowance - can I keep up my payments?

dinkle

Being one of the many who have an ISA with the dreaded Icesave I was just wondering in the event that I haven't used all my ISA allowance yet for this year does anyone know if I can open a new ISA to continue paying into whilst waiting for this whole mess to be sorted out and then transfer my existing ISA funds into this one? I'm aware that you can only subscribe to one ISA in a tax year but given the circumstances and that I haven't used my full allowance but want to keep making my regular contributions that I was making so as to keep my savings going? My current account provider weren't able to tell me.

Has anyone heard anything about this?

Thanks

Jo

Crabman

Hi Jo,

Below is a quote from the Are Your Savings Safe article

Plus, if you have money in an Icesave cash ISA, it is very likely that it will retain the tax-free ISA status. The Treasury has said:

• "Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts".

This is also what happened with Northern Rock. Read the full statement, and all updates will appear here and be included in the free weekly email.

If you open a second ISA account you'd be breaching HMRC rules, so I think the best option is to pay the money destined for your Icesave ISA account into an instant access savings account, then once this is all sorted out, transfer that into the ISA account (keep an eye on the article for updates).

dinkle

Hi - thanks for that - knew someone here would come up with the info!!

Think I will be looking around for a decent savings account in the meantime - possibly with the bank of Azibijan - does anyone know how stable their economy is?!!

Jo