Can I have two ISA's

Aaagh

I've tried to find the answer to this from other posts but am still confused.

I have an Egg ISA with just over £1,000 in it and have only made one payment of £75 this year. I have been looking at the First Direct site (my current bank) and think I might go for their regular saver ISA, but can I do this if I already have an Egg ISA, even if I don't pay anything else into it? The FD site says you can't transfer other ISA's into it. Can I pay into both as long as the combined total doesn't exceed the yearly limit?

Thanks.

trinidadone

hey AAAgh, you can only have one cash ISA per calendar year with one institution only. You can have other ISA's from previous years, but you cannot have two ISA accounts, here is a link you might find interesting, good luck:

http://www.moneysupermarket.com/c/savings/isas/guide#How-many-Isas

Aaagh

Thanks.

So, if I hadn't paid in the £75 this year would I have been able to open the First Direct one? I opened the Egg ISA before April 2008, and the information in the link says you can't open more than one ISA per year.

I am worried now, because I have completed the form to apply for the FD ISA and pay the minimum £25 pm payment. Will I automatically be refused because it will be flagged up that I have another ISA?

Lynn11

I would have thought that this is ok as you opened the egg isa before april 2008 so you are opening a new isa this 08/09 tax year. As long as you do not go over your £3600 limit in both isa this is ok. I believe this is correct as I have 2 isas which run and have standing orders going to them every month and but I do not have the maximum going into them.

trinidadone

Aaagh wrote: »

Thanks.

So, if I hadn't paid in the £75 this year would I have been able to open the First Direct one? I opened the Egg ISA before April 2008, and the information in the link says you can't open more than one ISA per year.

I am worried now, because I have completed the form to apply for the FD ISA and pay the minimum £25 pm payment. Will I automatically be refused because it will be flagged up that I have another ISA?

with your second message, am I assuming the following:

Egg ISA opened: 2007 - 2008
First Direct: 2008 - 2009

If this is true, you can not put any monies into your egg isa after 5th April 2008 and can only put a max in your first direct until 4th April 2009

Aaagh

Darn! Think I would have been OK if I hadn't paid that £75 when I was feeling a bit flush.

I will ring FD tomorrow and ask them to clarify for me.

Thanks for all your advice.

Baldur

Lynn11 wrote: »

I would have thought that this is ok as you opened the egg isa before april 2008 so you are opening a new isa this 08/09 tax year. As long as you do not go over your £3600 limit in both isa this is ok. I believe this is correct as I have 2 isas which run and have standing orders going to them every month and but I do not have the maximum going into them.

You are only permitted to subscribe (pay new money) to one Cash ISA per tax year, whenever the ISA was opened and irrespective of whether you use the full allowance or not.

Blah99

If you're married you can use your wife's ISA allowance also (as in, transfer your cash to her account and get her to stick it in her current year ISA).

jem16

Blah99 wrote: »

If you're married you can use your wife's ISA allowance also (as in, transfer your cash to her account and get her to stick it in her current year ISA).

So long as you are aware that the money would now be hers.

Blah99

jem16 wrote: »

So long as you are aware that the money would now be hers.

Not necessarily. Transfers of money between spouses are totally exempt from any Government/taxation control, but are not automatically legally considered gifts. If husband transfers £100,000 to wife for tax purposes then they divorce, the wife cannot necessarily claim to be the owner of that amount of money and expect to keep it.

zzzLazyDaisy

That is not strictly correct - if a husband transfers money to his wife, that money becomes legally hers to do with as she wishes.

If they divorce, and assuming the wife has not spent the money in the interim as she is entitled to do, then the court can make whatever property adjustment order it sees fit - which would take into account the money available and the needs of the parties.

What it definitely would not do, is simply to transfer the money back to the husband!