Divide cash isa between two providers

loulou41

I thought I could divide my £3600 cash allowance between two providers. The reason I am asking is I transferred a cash partly and then find out I am £500 short to get an extra 0.25% rate. Next April, I intended to top it with £600 and then open another isa with another provider for £3000. I read this is not possible. Is this correct? I thought you could add to your isa until you reach £3600. Thanks

alastair_h

No - you would be effectively contributing to 2 ISA's in a financial year if you did that, if I'm reading you right?

Milarky

It may be possible to transfer some of the current ISA to the ISA you are looking into for next next year. In that case you could subscribe the full annual allowance to the present account after 6th April and then transfer £3000 (of 2008/09 money) to open a new ISA with.

This could also work by transferring £3000 Just after 6th April (leaving a balance of £600) and then simply adding £3600 to the current ISA

This would permissible under ISA regulation.. so it could allow you to do what you want to ... but is subject to the specific account terms and conditions of the ISA providers and particular accounts you want to work with ... so either of them may not allow it...

Paul_Herring

loulou41 wrote: »

I thought I could divide my £3600 cash allowance between two providers.

Not at the same time in the tax year they're contributed.

The 'current years' contributions must be kept together in the same institution until the end of the tax year (when they become 'previous years' contributions.) You may transfer the current year's contributions to another institution, but all the current year's contributions must be moved.

Previous years' contributions may be split how you wish.

The reason I am asking is I transferred a cash partly and then find out I am £500 short to get an extra 0.25% rate.

Have you used your £3600 allowance for this year? If so, you're basically out of luck.

Next April, I intended to top it with £600 and then open another isa with another provider for £3000.

This you cannot do - you'd be contributing to two ISA's in the same tax year. And as I indicated above, you cannot even open the new ISA with £3600, and transfer £600 (or £500, or whatever) to the old provider, since the £3600 has to be kept together until the next April.

loulou41

I have already used my isa allowance this year. I understand the rule now. I have to put my isa with only one provider in a financial year. I can still add up £3600 for next April 2009 - 2010. I can add to my isa month by month until it reaches £3600. Hope I got this right. Thanks