Sunday Morning Slowness - Can't pay in to more than 1 ISA?

BigDonut

Hi,

I opened a FD ISA at 3% in december last year. Its due to revert to 0.2% (or soemthing similarly poor) in december this year.

I haven't started this years ISA allowance yeat and was about to pay it in to FD but then realised I wouldn't be able to transfer it out to another account in december becaus eyou are not allowed to pay in to two different ISA accounts in the same tax year.

therefore, I should be looking for a decent rate account that allows transfers in so that I can move th eFD stuff in december.

Its sunday morning and my brain is not functioning so I would appreciate if someone could confirm that I haven't got this totally backwards.

Thanks in Advance

Lokolo

Why would putting money into FD mean you cannot transfer out to another ISA in December?

You aren't allowed to put new money into more than 1 ISA in a tax year, at any one time.

So you will be putting new money into an ISA (FD) now, then transferring to a new ISA in December, which is perfectly fine. You can then top this new ISA up with the rest of your allowance.

BigDonut

Ahh ok maybe I've mis understood then.

You can only contribute to one ISA account in the year but if you transfer an ISA you can open a new one to transfer the ISA money in?

Lokolo

Yep exactly.

But when you open an ISA to transfer, you do it by filling in a form, not by internet banking or anything!

Lokolo

Yep exactly.

But when you open an ISA to transfer, you do it by filling in a form, not by internet banking or anything!

BigDonut

Thanks thats made things a bit clearer