Fixed-Rate Cash ISA with one Provider & Flexible Cash ISA with another provider

Artikulos

Hi, I've already had a Cash ISA with Britannia Building Soc for a no. of years now and am thinking of renewing my Fixed-Rate Cash ISA with them for 2yrs (Interest rate 3.40% for loyal customers) for 2011-2013.

1) I was wondering if it's possible to open another Flexible Cash ISA with another provider either in this y/e Apri 2012 or next y/e Apr 2013 and put new money into this new provider e.g. if it has a better interest rate?


I know that you cannot have two ISA providers for the over GBP5k ISA allowance per year, so just wanted to clarify how this rules applies here?



2) Also on a slightly more complicated level, could I also fix the amount with the second provider in y/e Apr 2013, and have two fixed-rate ISA accounts open (i.e. one Britannia 2 yr fixed ISA and another 1yr Fixed ISA with another provider)?

Lokolo

1) Yes as long as you not contribute any new money into your other ISAs. The rules say you are not allowed to contribute (which means to put new money in), to more than one ISA a year, and has to be up to your limit. You can have as many ISAs as you want.

e.g. I have 1 with Halifax (previous year), 1 with Aldermore (years old) and 1 with Barclays (this year). But I can only contribute to the Barclays one as this is my ISA for this year.

2) Yes you can do this, but make sure the ISA is full, or you cannot contribute anymore, as the fixed ISAs tend not to allow more than one deposit.