Question about Cash ISAs please

MyLastFiver

Hi,

My wife and I both have cash ISAs with very small amounts in them (a few quid) that we opened up years ago and forgot about.

We now want to set up ISAs with different providers, and actually use them to save. We don't want to continue with our current ISAs and we don't want to do a transfer - there are reasons for this I can't go into.

We just want to close down our existing ISAs and open new ones with new providers. Can we do that this year, or would we have to wait until April to open the new accounts?

Thanks.

Young_Offender

Hello,

No need to close your old ISAs - they have no bearing on your subscriptions this year. You can both open new ones with whichever bank you like, with an annual deposit limit of £3600 each.

isofa

As per the above advice.

The ISA sub forum is here: http://forums.moneysavingexpert.com/forumdisplay.html?f=18

apt

You can invest £3600 each in new Cash ISAs now and another £3,600 each in the next tax year starting April 2009. You can either close the old accounts or transfer them to your new ISAs if the new ISAs allow transfers in. If you don't need access to your money try and get a fixed rate ISA at around 6%. If you need access Kent Reliance has probably been the most consistent variable rate payer, but make sure you apply for a Direct ISA. They also offer higher rate ISAs for the young and elderly (not an approach I really like).

maypole

MyLastFiver wrote: »

Hi,

My wife and I both have cash ISAs with very small amounts in them (a few quid) that we opened up years ago and forgot about.

We now want to set up ISAs with different providers, and actually use them to save. We don't want to continue with our current ISAs and we don't want to do a transfer - there are reasons for this I can't go into.

We just want to close down our existing ISAs and open new ones with new providers. Can we do that this year, or would we have to wait until April to open the new accounts?

Thanks.

If you don't have an isa for this year, open one now and then another one in April 2009. Don't know why you won't transfer your old ones, but, you don't have to go to that provider to do it. You go to a new provider with the account numbers and they do the transfer for you. A shame to lose that tax status for those.

StevieJ

MyLastFiver wrote: »

Hi,

My wife and I both have cash ISAs with very small amounts in them (a few quid) that we opened up years ago and forgot about.

We now want to set up ISAs with different providers, and actually use them to save. We don't want to continue with our current ISAs and we don't want to do a transfer - there are reasons for this I can't go into.

We just want to close down our existing ISAs and open new ones with new providers. Can we do that this year, or would we have to wait until April to open the new accounts?

Thanks.

If you close your ISA you will lose your allowance (unless it is Icesave), simple as that.

Baldur

Whether you decide to close your old ISAs (or not) is irrelevant to your ability to open & subscribe to a new Cash ISA each tax year, if you wish.

Previous tax years' Cash ISAs have no bearing on your current tax year's allowances, you can open & fund one new Cash ISA per tax year.