Have I made a cash ISA ricket?

Onawingandaprayer

Have advised my daughter to transfer her Santander cash ISA, earning zilch, to a 1 year fixed Natwest ISA, but not put any new cash in. (Just transfer existing ISA.)

But as she wanted some accessible money, have suggested she also opens a flexible one with Virgin and pays in as necessary.

Both will be in this current tax year. Now reflecting and think I may have advised her badly (will never hear the end of it!).

Does this count as two ISAs in one year, even though she's only actually contributing to one?

middlepuss

Onawingandaprayer wrote: »

Have advised my daughter to transfer her Santander cash ISA, earning zilch, to a 1 year fixed Natwest ISA, but not put any new cash in. (Just transfer existing ISA.)

But as she wanted some accessible money, have suggested she also opens a flexible one with Virgin and pays in as necessary.

Both will be in this current tax year. Now reflecting and think I may have advised her badly (will never hear the end of it!).

Does this count as two ISAs in one year, even though she's only actually contributing to one?

You can do as many transfers as you like and it does not count towards the annual amount you can put into an ISA.

Gromitt

Transfers don't count - you can transfer an ISA as many times as you want.

Only 'subscribing' (putting fresh money in) counts. You can only subscribe to one ISA per year.

psychic_teabag

You didn't say when the Santander one was opened. I assume it originally had a 1-year bonus, and so to be earning nothing now it was opened last financial year, and so is fine. (As long as nothing had been paid into in since April.)

Onawingandaprayer

psychic_teabag wrote: »

You didn't say when the Santander one was opened. I assume it originally had a 1-year bonus, and so to be earning nothing now it was opened last financial year, and so is fine. (As long as nothing had been paid into in since April.)

Good point. No, nothing in in current year.

Thanks all of you.