cash ISA question

laurahughes

Hi

I'm new to ISAs and have a question.

I recently (November) opened a cash ISA with Scottish Widows, which at the time was the best deal, but since opening it there are better deals out there. I don't get paid interest on my money until November 09.

Now we are in a new tax year I know I have a £3,600 cash ISA allowance again, is this in the same ISA or can I open another one? Is it worth opening another ISA in an account paying higher interest and once my Scottish Widows ISA has paid me interest transferring some or all of these funds into the new ISA account. Or can I have only one cash ISA at any one time, so I should continue paying in to my current ISA until November and then look for a better deal elsewhere?

Thanks

Baldur

laurahughes wrote: »

Hi

I'm new to ISAs and have a question.

I recently (November) opened a cash ISA with Scottish Widows, which at the time was the best deal, but since opening it there are better deals out there. I don't get paid interest on my money until November 09.

Now we are in a new tax year I know I have a £3,600 cash ISA allowance again, is this in the same ISA or can I open another one? Is it worth opening another ISA in an account paying higher interest and once my Scottish Widows ISA has paid me interest transferring some or all of these funds into the new ISA account. Or can I have only one cash ISA at any one time, so I should continue paying in to my current ISA until November and then look for a better deal elsewhere?

You can do whatever you like with this tax year's allowance - open a different ISA or pay it into the Scottish Widows one (if it accepts additional deposits).

If the Scottish Widows ISA is paying a poor rate, you can transfer it now to any provider that accepts Cash ISA transfers, just by completing the chosen new provider's ISA transfer form - you don't have to wait until Scottish Widows pay you interest.

Any interest accrued to the date of transfer will be transferred to the new provider.