Deposit methods for new cash ISAs

Tiger22

I have a question about funding new cash ISAs for this tax year.

I currently have existing funds in an ISA whose bonus period has ended so I need to transfer these funds to a new ISA. In addition I wish to use my full cash ISA allocation for this year in a new subscription.

It seems that the best cash ISA rates do not allow for transfers in. For ISAs that do allow transfers in, they all seem to state that there is a minimum deposit (from £1 upwards). What I do not undertsand is whether this minimum deposit can come from an ISA transfer or whether the minimum deposit has to comprise of new money that forms part of this year's subscription. If it is the latter then I effectively have to put all ISA funds, including new money, into a single ISA account that allows transfers in. If it is the former than I could take out a new ISA with a better rate for this year's subscription and a second ISA with a slightly worse rate, but which allows transfers, for previous year's ISA money.

Can anyone advise whether new ISAs which require minimum deposits can be opened purely for transferring money in from previous years?

Spiggle

Your transfer funds will cover the deposit.

HTH,
Spigs