ISA year

Pmarmalade

I opened an ISA with A&L a year ago now, so 09/10 tax year. As I haven't applied for an account this current tax year I thought I could apply for another right now and get in before the 11/12 tax year starts. However, the Santander site says you can only open a new account if: "You haven't paid into a cash ISA in the current Tax year". I opened the account last year, but I did pay into it this year. Does this mean I need to wait until the new tax year just around the corner before I can open the new account?

Lokolo

Yes that is correct.

Your ISA contributions have to go into the one you have contributed to this tax year.

Pmarmalade

Unfortunately this means I'm going to miss out on the excellent easy access ISA rates ending in the next few days then?

This confuses me somewhat. Why do they offer them now instead of the start of the next tax year when everyone who has one this year is ready to open a new one?

Lokolo

Pmarmalade wrote: »

Unfortunately this means I'm going to miss out on the excellent easy access ISA rates ending in the next few days then?

This confuses me somewhat. Why do they offer them now instead of the start of the next tax year when everyone who has one this year is ready to open a new one?

It's to get all those that have forgotten to use their allowance rather than get all the good people who have used their allowance.

psychic_teabag

Pmarmalade wrote: »

Does this mean I need to wait until the new tax year just around the corner before I can open the new account?

No, it means you must wait until next tax year before you can pay into a new account. But you can open as many as you want, leaving them with zero balance. e.g. see this thread and later posts in this thread.

Pmarmalade

But no account lets you open without an opening deposit of at least £1? Surely that's still paying in?

I'll read the threads, thanks. I've read a lot on it and this bit still confuses me!

Lokolo

Pmarmalade wrote: »

But no account lets you open without an opening deposit of at least £1? Surely that's still paying in?

I'll read the threads, thanks. I've read a lot on it and this bit still confuses me!

Satander does. You have to deposit within 30 days, which of course, is fine as the new tax year is in a week

Pmarmalade

Cool, thanks. My current ISA (opened this time last year) is with them/A&L. I just emptied the interest out of it.

Was hoping to go with Halifax/BOS so all my accounts were under one login but I don't mind using Santander again, plus it obviously tracks base rate.

I guess this means I'm going to be in the exact same situation every year around this time. I don't get why the best rates are now... :sad:

Pmarmalade

Come April 6th are we likely to see some nice new ISAs introduced?

Lokolo

It's possible but personally I think doubtful. Barclay's always release the best/one of the best for new money each year.

Pmarmalade

Lokolo wrote: »

It's possible but personally I think doubtful. Barclay's always release the best/one of the best for new money each year.

Can you shed any insight into why the banks offer their best rates now instead of at the start of the tax year?