*URGENT* New MiniCash ISA - 2 from same provider???

Mikeyorks

djohn2002uk wrote:

You open say, 4, mini cash ISAs but you can only invest £3000 in any tax year. That can go into one of them and the same every year, what do you do with the others?
You could put £3000 in a different one each year for 4 years but then would take longer to take advantage of better interest rates which kick in as the capital increases. So again I ask, what is the point?

I have 3 mini cash ISAs with the same provider. They are all quite separate accounts. Primarily because they are all fixed rate. And each year (you can equally read 'each account') is at a different interest rate and, indeed, they are all for different fixed periods.

Would love to add money to the earlier ones, which are at a far better rate than is currently (or foreseeably) on offer. Regrettably the provider doesn't quite see that as an option.

ManAtHome

Rochdale_Guy wrote:

I'm probably being investigated by the Inland Revenue and FBI now for attempted money laundering...... !

Ahah - you master crims always slip up....

Wouldn't worry about it - A&L should be able to sort it out fairly painlessly.

Mind you, sounds like they should maybe sort out their applications pages - I'm with a couple of other providers and when you go into 'open a cash ISA' they have a link or button for existing cash ISA holders. My impression of 'the rules' is that if you subscribed in the previous tax year, they hold it under one account number, if not you get a new number. Anyway, that's just how it's presented to you - may well be known as Account 123456/2005-6 internally.

Mikeyorks

ManAtHome wrote:

Anyway, that's just how it's presented to you - may well be known as Account 123456/2005-6 internally.

Exactly my view. My provider opens new accounts for each year. But those that don't - where money for a subsequent year - at a different interest rate - is applied to a previously opened ISA, they must maintain that separately for accounting purposes? Even though the end result is transparent to you.

djohn2002uk

Mikeyorks wrote:

I have 3 mini cash ISAs with the same provider. They are all quite separate accounts. Primarily because they are all fixed rate. And each year (you can equally read 'each account') is at a different interest rate and, indeed, they are all for different fixed periods.

Would love to add money to the earlier ones, which are at a far better rate than is currently (or foreseeably) on offer. Regrettably the provider doesn't quite see that as an option.

So why can't you add to the earlier ISAs? Is that because they are fixed periods? If so, how long are these fixed periods? Seems to me they encourage the opening of more and more accounts, this can only mean higher admin costs for the provider and a pain for the investor.

hina

I want to open the 5% fixed rate(halifax) and put in 3K and also open A& l 5.2% and transfer in my previuos years subscription - is that possible?

Mikeyorks

hina wrote:

I want to open the 5% fixed rate(halifax) and put in 3K and also open A& l 5.2% and transfer in my previuos years subscription - is that possible?

Yes. But you'll need to be quick in opening the A&L account as another thread in this forum indicates they are closing the 5.2% offer from 12th April.

Mr_Mumble

djohn2002uk wrote:

Perhaps you'd like to show proof of this as I did here.

After 5 April 2005, you will only be able to put money into either one Maxi ISA or up to two Mini ISAs – one each for cash and stocks and shares, as life insurance is merging with stocks and shares.

You are taking this out of context. You quoted the HMRC ISA and PEPs leaflet and I italicised the part which contradicts your assertion that Edinburghlass' statement was wrong.

The section in full:

How many ISAs can I have?

There are limits on the number of ISA accounts you can subscribe to each tax year.

• Up to 5 April 2005, you can only put money into either one Maxi ISA or up to three Mini ISAs – one each for cash, stocks and shares, and life insurance.
  
• After 5 April 2005, you will only be able to put money into either one Maxi ISA or up to two Mini ISAs – one each for cash and stocks and shares, as life insurance is merging with stocks and shares.
  

But in different years, you could choose to save with different managers. There are no limits to the number of different ISAs you can hold over time.

You cannot put money, for example, into both a Maxi ISA and a Mini ISA in the same tax year, or into two Mini cash ISAs.

The paragraph you quote again in your reply is a bullet point about the changes in the rules. It is made clear that these rules are per tax year.

Mikeyorks

djohn2002uk wrote:

So why can't you add to the earlier ISAs? Is that because they are fixed periods? If so, how long are these fixed periods? Seems to me they encourage the opening of more and more accounts, this can only mean higher admin costs for the provider and a pain for the investor.

Well ... because that's how it works! And I assume the T&Cs are there primarily because of the fixed periods - which vary from 1 to 5 years (my first one was for the max allowed of 5 years. The second for the max allowed of 4 years)
If you add to that the variability in the interest rates each year - doesn't surprise me they insist on separate accounts. Which I suspect they have calculated is easier / cheaper to administer. It's certainly easier, that way, for me to patrol them.

djohn2002uk

Mr_Mumble wrote:

You are taking this out of context. You quoted the HMRC ISA and PEPs leaflet and I italicised the part which contradicts your assertion that Edinburghlass' statement was wrong.

Where was my ASSERTION that EL was wrong?
My words were:- I don't think this info is quite right.
I chose my words carefully because I wasn't 100% certain.

codetown

People you are going totally out of topic here.
It is clear that the original request has been answered. The guy just was wrong in assuming that he had to open a new Direct ISA with A&L when he could top its precedent one with 3k pounds for the new tax year.

That's all and I am sure A&L will help him sort this out.