1 year fixed ISA - moving 'part year'

veryintrigued

Hi there

Probably a daft question but looking for some clarity.

I have a Principality 1 year fixed ISA taken out in Oct 2010. I am about to (on the 6th April) feed the full 2011/2012 £5100 allowance into this account.

Am conscious that the 2.8% rate isnt the best around anymore (and may lag even further later this year - hence my question is:

When the one year finishes in Oct 2011, should I spot a better ISA, can you confirm that the 1 year fixed is from when the ISA was opened (it was actually switched from another provider) in Oct 2010 and not from when any additional funds are added. i.e. am not tied in for even longer.

Writing this I think I have just answered my own question. i.e. I am only 'tied in' the ISA finishes in Oct 2011 no matter how many deposits I make after the Oct 2010 date!

Thanks as always for your help

notbritishgas

Pleased you have sorted it yourself.
However the 2011/12 amount allowed into a cash ISA is £5340 not £5100, unless the chancellor alters it in a few minutes time.;)

veryintrigued

notbritishgas wrote: »

Pleased you have sorted it yourself.
However the 2011/12 amount allowed into a cash ISA is £5340 not £5100, unless the chancellor alters it in a few minutes time.;)

Well I didnt have a clue about this!!

Am amending the money I transfer over right now.

Thanks for taking the time to reply and sorting me out!

notbritishgas

veryintrigued wrote: »

Well I didnt have a clue about this!!

Am amending the money I transfer over right now.

Thanks for taking the time to reply and sorting me out!

I hope you did not misunderstand me.
The allowance for this year 2010/11 which finishes 5th April is £5100, but for the next tax year starting 6th April 2011/12 it increases to £5340.

veryintrigued

notbritishgas wrote: »

I hope you did not misunderstand me.
The allowance for this year 2010/11 which finishes 5th April is £5100, but for the next tax year starting 6th April 2011/12 it increases to £5340.

Cheers for getting back to me - yes understand. When I said I was amending 'right now' I meant amending the the bill payment I have in place to send this amount over on the 6th!

Cheers again

sjwk

Correct me if I'm wrong, but as I understand it, you are not locked into having to put 2011/12 money into the same ISA. As far as I have understood, you can only open one ISA in one financial year (6 Apr-5 Apr) but once 6th April arrives you're free to open a new one at whatever the best rate is rather than pay into last year's?

Then when October rolls round, you can transfer the money in that ISA into either the one you opened in April (if it allows transfers in) or into whatever the best rate ISA you can find in October - as long as you're not putting 2011/12 money into that it doesn't count as opening a second ISA as you're simply moving the existing 2010/11 one.

More hassle to keep track of multiple ISAs of course!

david78

Your understanding is correct sjwk.

In fact you can open as many cash ISAs in a tax year as you want, but you can only pay money into one of them in that year.

veryintrigued

Thanks guys that gives me more of an option and something that I had overlooked.

Looking at the Santandar 3.2% easy access ISA thread two people have stated that if one is opened now (and not funded until April 6th) then 1 months interest will be lost.

Is this true?

The difference between a 3.2% and 2.8% interest would seem to be circa £30 (on full allowance over a year) so just trying to weigh up whats best.

Thanks again

pawlala

david78 wrote: »

Your understanding is correct sjwk.

In fact you can open as many cash ISAs in a tax year as you want, but you can only pay money into one of them in that year.

Nearly true - you can pay money into as many of them as you want but only up to a limit of £5100 (for this year) in total across all.

blueberrypie

pawlala wrote: »

Nearly true - you can pay money into as many of them as you want but only up to a limit of £5100 (for this year) in total across all.

No, this is completely wrong. You can only subscribe (i.e. pay in new money) to *one* cash ISA per year. You can *transfer* funds from old ISAs to as many different ISAs as you want, but you *cannot* split the ISA allowance for the current tax year between ISAs - it must all stay together.

david78

blueberrypie wrote: »

No, this is completely wrong. You can only subscribe (i.e. pay in new money) to *one* cash ISA per year. You can *transfer* funds from old ISAs to as many different ISAs as you want, but you *cannot* split the ISA allowance for the current tax year between ISAs - it must all stay together.

This is correct - well nearly .

The only "legal" way you can split new money across different ISA accounts is where all accounts are with one provider who treats all the cash ISA accounts they offer as if they are one big ISA account, e.g. Nationwide do this, and I think a few other providers do (M&S Money?). I am using this to split my ISA allowance for next year across Nationwide's fixed rate 18 months and eISA accounts.