Simple ISA query 30 March 2009 at 8:03PM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 2 replies 730 views

Jastons

I think this is a simple question but its got me confused

I opened a cash ISA with £3000 in the 07-08 tax year and the money is still in there. Can I now open a new cash ISA with £3600 for the 08-09 tax year and keep the first ISA open or do I need to close the first one?

I think the reson im confused is because when I filled in the aplication form for my ISA I thought I ticked a box saying something like "automatically open a new ISA for the next tax year" but everything ive read about ISAs in genreal suggests that sort of thing wouldn`t have been on the form. Please help.

Many thanks

TeenWolf

If you have an ISA from a previous year and you don't want to add any more money in to it, then yes, it is perfectly acceptable to leave that account open, leaving whatever you already have in it to continue to accrue interest, and open a new ISA with a different provider. What you are not allowed to do though is split a year's ISA allowance between two different accounts ... i.e. you can't put some of this year's allowance into your new ISA account and some in the old one.

Some providers will also let you transfer funds from previous years with other providers into your new account to be added to whatever you put in this year. Please note though that this isn't always the case and whatever you do, don't take the money out of your previous account first ... it needs to be transferred between accounts!

Hope that helps?

Jastons

Thats cleared things up,

Thankyou