Two isa opened in different years

Zack98_2

Hi,
I have an ISA opened years ago with Bank1 and its empty and its set for yearly paid interest.
Recently I opened another ISA with Bank2 and put it 5100 for this year and this bank paying me interest monthly.
Now this is my question,

Can I take interest from Bank2 till 31st March 2011 and then take out that money from Bank2 and put that money to Bank1 to get yearly interest from Bank1?

Thanks in advance for reply

Loughton_Monkey

You cannot contribute to more than one ISA in any one tax year. I infer that you contributed to Bank 2 this tax year. You can transfer any ISA from one provider to another, at any time (providing the provider allows it), but I cannot imagine why you would want to pay it into empty Bank 1. Transfers take a couple of weeks, minimum, and so it would not get across until well into next tax year.

Even if it got there on April 3rd. What would you get? 3 days' interest at ½%?

If I were you, I would leave well enough alone for the moment. Wait until March 2011, at which time all the ISA providers will (hopefully) be competing nicely. You should then look for whoever is providing (a) the best cash ISA rate - which is usually in the form of a 12 month only 'bonus' rate, and (b) ability to trasfer in from other ISA's.

For me, last March, I found Santander to be the best - paying 3.2% and allowing transfers in. So that's where my whole lot is. But next March, almost certainly I will have to find a new home, because if I do nothing, then Santander will pay me ½% next year! [March is when you should start looking. Obviosly, you cannot start the new ISA until April 6th].

If (as you seem) to want a provider paying annual rather than monthly interest, then you should look out for that too. But personally I don't care, because I leave it all in to roll up anyway.

apt

You can, but being paid annual interest does not mean that you will be paid as if you had had money in the account for the whole year when its only been in for a few days. If you have money in an account for 6 days you will only get 6 days' interest whether the interest is paid out annually or monthly.

KingL

duplicate thread

https://forums.moneysavingexpert.com/discussion/2730627