Have an ISA - can I open another one this tax year?

AnnieMags

Apologies if this has already been addressed several times! I have come into a bit of money and would like to "store it safely" for the time being. I already have an ISA that is not at the max amount, and for several reasons I would not want to top it up at once, but continue to save into it every month as I am doing now. Can I open another ISA with another bank now and put the full £5,340 into it in one go, or do I have to wait until April 2012? Can you only have two ISAs if their combined amounts do not exceed £5,340 or can you have two and put the full allowance in each of them every year? Thank you in advance for any help.

oldfella

you cant have 2 ISAs that you have subscribed to in the same tax year, unless you transfer the first one to the second. The total you can deposit in a year is currently £5340

AnnieMags

Thank you, that is helpful. I will have to look for other ways to squirrel away my pennies!

calypso_rhapsody

You could I believe open a Stocks and Shares ISA for another £5340 - but you have to invest in Stocks and Shares which is obviously a rather more risky propostion. You should only do so if you are comfortable the the increased risk, have some understanding of what you are investing in and are prepared to commit your money to this sort of investment for the long term (say 10 years+). Some would say that investing in a FTSE100 or FTSE250 tracker would be an acceptable risk - but it depends on your circumstances.

Otherwise put the money into the best instant access account (i think that's Coventry's Poppy account at present but do check) and move it into an ISA on 6 April.

AnnieMags

Thank you, Calypso - I don't think investing is for me - I do need access in an emergency. A high(ish)-yield instant access saver is probably my best bet - will shop around as you suggest.

McKneff

You really would be better filling your ISA up first, otherwised you are losing (or not gaining) interest on the tax free status.

Then save what you save in the new account that you set up for your new money.

jimjames

Why not top up your existing one to the maximum and then transfer it to a better rate if you want next April?