Can you have 2 ISAs?

fluffyowl

Hi, I have a flexible ISA, that I have been putting money (£2000) into this year, but have now taken it all out as I have realised the interest rate has dropped to a ridiculously low level. Can I open another ISA and put the rest of my allowance in that, but leave this one open so I can get the interest (paid annually) or do I have to close it?

Lokolo

You should continue to use the ISA you opened with. Not another one.

You can however, open another ISA and transfer the old one across. This should bring any interest owed to you. But you shoukd pick an ISA that allows transfers in.

Which ISA were you thinking of opening?

G_M

You cannot put money directly into more than 1 ISA in any one tax year, though you can transfer money from one ISA to another (even if you've already contributed to the first one).

If I read you right, you have already made contributions to the first ISA (£2000), so no, you cannot open a new one - you can only transfer.

As you have contributed £2000 to your ISA, you can contribute a further £3100 and then use the tranfer process to move this to a new ISA provider. The £2000 you have withdrawn cannot be replaced.

psychic_teabag

Usually, it's not necessary to keep an account open in order to get annual interest : interest is earned daily and will be paid when you close the account. However, in this case, it's fortunate that you didn't close it, as already noted.

cashbackproblems

My friend has an S+S ISA and Cash ISA with different providers and has been topping up both (so approx 15k+ overall) for yrs and yrs and no ones ever found out...

Mikeyorks

If that's '15k over all the years and years'? Then that's fully allowed. The ISA allowance is £10200 ...... and s/he can put £5100 into a cash ISA and a S&S ISA in the same year. This thread is about contributing to more than one cash ISA in a tax year.

If the £15k is per year ..... HMRC will identify that.

Loughton_Monkey

cashbackproblems wrote: »

My friend has an S+S ISA and Cash ISA with different providers and has been topping up both (so approx 15k+ overall) for yrs and yrs and no ones ever found out...

Nothing wrong with that? Perfectly legal to have a Cash ISA here, and a S&S ISA there. Perfectly legal to contribute to each one every tax year (up to £5,100).

Take one type of ISA (say Cash ISA), then the only rule is not to contribute to more than one of them in any one tax year. Now on top of that, I can have a S&S ISA. Again, I can collect 15 of these in 15 years, but I can only contribute to one of them in any one tax year.

Mikeyorks

psychic_teabag wrote: »

However, in this case, it's fortunate that you didn't close it, as already noted.

If it had been closed and all monies withdrawn ....... the OP could have opened a new ISA with a full £5100 in it. And fully be within the HMRC guidance. It's a 'self transfer' .... which HMRC tell you you can't do - but then provide both guidance and examples of how to do it.

Not wise if you have more than this years allowance in the original .... but you can do it. Not that the OP appears to be taking much notice!

cashbackproblems

Loughton_Monkey wrote: »

Nothing wrong with that? Perfectly legal to have a Cash ISA here, and a S&S ISA there. Perfectly legal to contribute to each one every tax year (up to £5,100).

Take one type of ISA (say Cash ISA), then the only rule is not to contribute to more than one of them in any one tax year. Now on top of that, I can have a S&S ISA. Again, I can collect 15 of these in 15 years, but I can only contribute to one of them in any one tax year.

Sorry i meant 15k PER YEAR, i know the limit is only 5100 in each one, but hes been putting more in and no ones ever found out and dont think they will.

dano1234

can you have a cash isa with one provider, and s/s isa with another provider in the same year?

Linton

dano1234 wrote: »

can you have a cash isa with one provider, and s/s isa with another provider in the same year?

Yes, particularly since most s/s ISA providers dont do cash isa's and vice versa. Dont forget that for any one year the total of the Cash ISA and S/S ISA is limited to £10200 currently and increasing with inflation next tax year.