Question Of The Week: New cash ISAs

Former_MSE_Penelope

Q. I am confused about new Cash ISAs. I realise I can only open one per year, but if I have an existing ISA, can I transfer that as well? I'm attracted to the Santander 3.5% (new money only). Rob by email.

A: The rule about opening ISAs is actually that you can only pay in to one ISA each year. Yet ISA transfers are totally separate. You can do them at any time, more than once a year if you wish, though only to ISAs that accept transfers.

As you mentioned, the new Santander 3.5% ISA doesn't allow transfers, as it's for new' money, so you can open one for this year but not put past years' cash in. For the best transfers, see the ISA Transfers guide.

Click reply to discuss.

melpomene

I would like to open a new Cash ISA [the Santander 3.5% one] for next year.

Can I open it already or do I need to wait?

pjhewlett

MSE_Penelope wrote: »

Q. I am confused about new Cash ISAs. I realise I can only open one per year, but if I have an existing ISA, can I transfer that as well? I'm attracted to the Santander 3.5% (new money only). Rob by email.

A: The rule about opening ISAs is actually that you can only pay in to one ISA each year. Yet ISA transfers are totally separate. You can do them at any time, more than once a year if you wish, though only to ISAs that accept transfers.

As you mentioned, the new Santander 3.5% ISA doesn't allow transfers, as it's for new' money, so you can open one for this year but not put past years' cash in. For the best transfers, see the ISA transfers guide.
Click reply to discuss.

I'm still confused about this.

I have put nothing into any ISAs yet this tax year but have money in a cash ISA from a previous year.

Does this mean I can open 2 ISAs now. A 3.5% A&L one for new money this tax year, and a 2.75% First Direct one to transfer my old ISA money into?

Thank you.

Jonbvn

melpomene wrote: »

I would like to open a new Cash ISA [the Santander 3.5% one] for next year.

Can I open it already or do I need to wait?

You need to wait.

I'm still confused about this.

I have put nothing into any ISAs yet this tax year but have money in a cash ISA from a previous year.

Does this mean I can open 2 ISAs now. A 3.5% A&L one for new money this tax year, and a 2.75% First Direct one to transfer my old ISA money into?

Yes you can. In effect, you are opening one new ISA, and transferring an existing ISA.

BTW, why the FD ISA? It is not the best payer.
http://forums.moneysavingexpert.com/showthread.html?t=401374

cottager

You may find these threads useful...

ISA FAQs:
http://forums.moneysavingexpert.com/showthread.html?t=2302457

Best ISAs currently available:
http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1

pjhewlett

Thanks for the advice and links. Much appreciated.

Went with the FD e-ISA because it is best rate with instant access and operated online. When I applied you didn't need a current account with them. Hopefully they'll honour that when I return the paper application.

Thanks again,

Peter.