Can one person have two ISAs?

agav

Hi all,
Just a quick question. My sister has two ISAs, both in the same bank, and I was wondering whether it is legal? I always thought that we are only allowed one each. She says that the bank clearly can see she's got two of them and if it wasn't right they wouldn't let her open the second one.
Can someone make things clear for me please?
Thanks.

Lokolo

Yes you can, you are only allowed to deposit into one a tax year (although, if they allow, you can have multiple with the same institution within the same tax year).

dzug1

As long as it's done right, you can have as many ISAs as you want - but you can only contribute new money into one a year.

dunstonh

It is also one ISA manager per year. Not one account per year. That can mean multiple accounts with one ISA manager is fine. (i.e. within ISA,you could have a fixed term deposit and open an instant access with the same bank later in the year)

agav

Thanks for your answers.
Happy saving!

Vortigern

dunstonh wrote: »

It is also one ISA manager per year. Not one account per year. That can mean multiple accounts with one ISA manager is fine. (i.e. within ISA,you could have a fixed term deposit and open an instant access with the same bank later in the year)

This is not widely known and looks as though it provides a solution for people who have opened an ISA with less than the full permitted allowance and then find that they can't add to it later because the account is closed to new money. All they need to do is open another ISA with the same provider.

Would this work for the scenario described in this post?

dunstonh

Vortigern wrote: »

This is not widely known and looks as though it provides a solution for people who have opened an ISA with less than the full permitted allowance and then find that they can't add to it later because the account is closed to new money. All they need to do is open another ISA with the same provider.

Would this work for the scenario described in this post?

Yes it should work in that scenario.

Mikeyorks

dunstonh wrote: »

It is also one ISA manager per year. Not one account per year. That can mean multiple accounts with one ISA manager is fine. (i.e. within ISA,you could have a fixed term deposit and open an instant access with the same bank later in the year)

The theory is fine and accords with HMRC guidance. But in practice - how many ISA providers offer such single accounts with ISA designation ...... but which can hold multiple ISAs?

HMRC wrote:

In practice, managers can operate a single account – which may also hold other savings products, such as stocks and shares ISA, feeder fund, and current account balances - provided

• the account is designated as an ISA account, and
• the monies relating to each investor’s ISA are recorded and can be accounted for separately.

dunstonh

he theory is fine and accords with HMRC guidance. But in practice - how many ISA providers offer such single accounts with ISA designation ...... but which can hold multiple ISAs?

That is a problem with many rules that exist on various tax wrappers. The rules may allow it but the providers dont have to implement them.

S&S ISA providers all do it. I have never looked for cash ISAs so wouldnt know which banks do or dont allow it. I bet many of the staff wouldnt know if their cash ISA did or didnt allow it either and even with those that do, they probably think it doesnt.

AirlieBird

Vortigern wrote: »

This is not widely known and looks as though it provides a solution for people who have opened an ISA with less than the full permitted allowance and then find that they can't add to it later because the account is closed to new money. All they need to do is open another ISA with the same provider.

Not necessarily. It all depends on whether the ISA manager's IT systems can handle multiple accounts within a single ISA wrapper. Most cannot.