Adding to old ISA and opening new one this year???

TomsMom

My OH has already added approx £2,000 of this year's ISA allowance to an ISA he already had. He will soon be in a position to invest the remainder of his £5,100 allowance, can he open a new cash ISA with a different provider with his £3,100 or must he stick with the one he's already added to?

jem16

He has to stick to the one he has already contributed to this tax year.

TomsMom

Ooh, that was quick. Many thanks Jem. He'll be a bit disappointed then, his old one earns a bit less interest than the one he was hoping to put the rest in which doesn't allow transfers. Oh well, them's the breaks!

jem16

TomsMom wrote: »

Ooh, that was quick. Many thanks Jem. He'll be a bit disappointed then, his old one earns a bit less interest than the one he was hoping to put the rest in which doesn't allow transfers. Oh well, them's the breaks!

Unfortunately if added on 6th April or after he's stuck with it - unless he can find a better paying ISA to transfer to.

Mikeyorks

TomsMom wrote: »

He will soon be in a position to invest the remainder of his £5,100 allowance

He can either add to the existing ISA and then transfer it (but obviously not to one that doesn't accept transfers) - or transfer it (same codicil) and then add the further funds.

Hoof_Hearted

You can only contribute to one cash ISA in any tax year, but if the rate is poor, transfer the lot to a better -paying one. Santander 2.75% allows transfers in and you may find an even better one. Remember not to draw it out. Use an Isa Transfer Form move the money internally once the account is opened.

TomsMom

Mikeyorks wrote: »

He can either add to the existing ISA and then transfer it (but obviously not to one that doesn't accept transfers) - or transfer it (same codicil) and then add the further funds.

Yes, thanks Mike. We'll keep an eye on interest rates and hopefully find one paying a better rate that does accept transfers.

TomsMom

Hoof_Hearted wrote: »

You can only contribute to one cash ISA in any tax year, but if the rate is poor, transfer the lot to a better -paying one. Santander 2.75% allows transfers in and you may find an even better one. Remember not to draw it out. Use an Isa Transfer Form move the money internally once the account is opened.

Thanks Hoof, yes we know not to draw it out. Santander out of the question because of previous bad experience, wont go through that again! He'll probably wait until after the election and see what happens to rates. Perhaps he should have gone with Barclays, 3.1% I think, only just behind the best buy at the time (Santander & A&L), they're supposed to have got their act together now after the fiasco two or three years ago. I haven't put anything in an ISA for this year yet, maybe I'll go with Barclays before they drop the rate!

xrjtg

It could be worth considering the Newcastle Balance Builder ISA. It pays 3.4% variable, and allows transfers in, but you must make 9 (or 10, it's not quite as clear as it could be), monthly deposits of between £100 and £500. So you could open the account with a transfer and £2100 deposit, then pay in £100 a month for the next 10 months to get as much benefit from the rate as possible.

Spiggle

Or alternatively TomsMom take a look at Birmingham Midshires at 2.7% including a 15 month bonus. Details are here:

http://www.moneysavingexpert.com/savings/best-cash-isa

Spigs

vigman

My wife's Lloyds 1 year fix cash ISA matures at the end of June 2010. Am I right in reading here that Birmingham Midshires give the best rate for transfer in and addition of this year's allowance?

TIA

Vigman