Icesave fallout - other ISA?

Keensaver

Hi,

I have currently invested part of my Cash ISA total for this tax year into Icesave. It is now obviously frozen!.

Am I able to invest the rest of my allowance for this tax year into another ISA provider which I still have open from previous tax years?

All help greatly appreciated!!!!!!

If not, looks like I will be heading to find a fixed rate savings deal!!

Thanks

jem16

Keensaver wrote: »

Hi,

I have currently invested part of my Cash ISA total for this tax year into Icesave. It is now obviously frozen!.

Am I able to invest the rest of my allowance for this tax year into another ISA provider which I still have open from previous tax years?

No as you have already subscribed to an ISA this tax year with Icesave.

You will need to wait until your funds are released and then find another provider who will accept transfers in.

innovate

jem16 wrote: »

No as you have already subscribed to an ISA this tax year with Icesave.

You will need to wait until your funds are released and then find another provider who will accept transfers in.

Don't think you have to wait with opening a new ISA until the Icesave funds are released - you can do this right now.

You might even be able to make payments into the new ISA - just make sure that the total amount paid in this tax year by you (i.e. excluding any interest) into both, the Icesave and the new ISA, does not exceed a total of £3,600 (assuming it's a cash ISA).

Agree you should chose an ISA that allows "transfers in" if you want to put your Icesave ISA money into the new ISA. Once you got the certificate the FSCS have promised, you can take/send that to your new ISA provider, together with a cheque for the amount to be put into your new ISA.

innovate

Keensaver wrote: »

Am I able to invest the rest of my allowance for this tax year into another ISA provider which I still have open from previous tax years?

AFAIK, there is nothing that forces you to put your money for each tax year into one ISA. You just need to watch out that you don't put more than the max annual amount (£3.6K cash / £7.2K S&S) into the ISAs.

Ask your providers, and may be your local HMRC office if you want to be 100% certain.

jem16

innovate wrote: »

Don't think you have to wait with opening a new ISA until the Icesave funds are released - you can do this right now.

Some have tried to do this and failed.

You might even be able to make payments into the new ISA - just make sure that the total amount paid in this tax year by you (i.e. excluding any interest) into both, the Icesave and the new ISA, does not exceed a total of £3,600 (assuming it's a cash ISA).

I wouldn't recommend this. If you pay into the ISA before the funds are transferred you will be seen to have subscribed to 2 ISAs.

jem16

innovate wrote: »

AFAIK, there is nothing that forces you to put your money for each tax year into one ISA. You just need to watch out that you don't put more than the max amount into the ISAs.

You cannot subscribe (i.e. put money into) to more than one ISA in the SAME tax year.

Read the article;
http://www.moneysavingexpert.com/savings/best-cash-isa#work

oldfella

You cannot subscribe (i.e. put money into) to more than one ISA in the SAME tax year.

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minor correction - you can if you transfer the original amount. What you cant do is subscribe to 2 open ISA.

innovate

Well, I have successfully opened more than one ISA in the same tax year, twice (did transfer existing ISA). Nobody has had an issue with this - not the banks, and not the HMRC. And you could do this as often as you like.

Icesave customers who want to retain their ISA status, and who opened an ISA in the current tax year, might have no other choice but opening a second ISA. (As per FSCS: "An ISA certificate will follow by post to allow you to reinvest that sum in an ISA with another provider by 5 April 2009").

Just don't ask the new bank too many questions - open an ISA (that allows transfers in) and that's it. Do it online if you want to avoid circular debates with bank staff.

innovate

HMRC ISA Helpline on 0845 604 1701 (Monday -Thursday 8.30-5.00, Friday 8.30-4.30)

or you can email them - http://www.hmrc.gov.uk/isa/welcome.htm

jem16

innovate wrote: »

Well, I have successfully opened more than one ISA in the same tax year, twice (did transfer existing ISA). Nobody has had an issue with this - not the banks, and not the HMRC. And you could do this as often as you like.

Opening an ISA is not the same as subscribing to an ISA - you have to be careful with the terminology. If you open an ISA to transfer an existing ISA that's fine - however you must be careful not to put any new money into it when opening it. You can of course add funds after you have transferred if this becomes your only open ISA.

You can open as many ISAs as you like in one tax year provided you only subscribe (pay into) to one of them. So you could have opened 10 ISAs by transfer and one ISA by paying in new money but you will only be able to pay into one not split your allowance over several.

2cats1kid

Agree with jem16. If the OP opened another ISA and put in the balance of their allowance they would have subscribed to 2 ISAs in a tax year and that is not allowed.

OP could open ISA in readiness for the Icesave money, transfer the Icesave money in and THEN top it up, but not the other way round.