Save to Buy ISA and online ISA - help please

jetblack61

Ok, so here's my scenario and would like some assistance...!

I have a Britannia ISA that has been set up since I was a kid (was called something else back then and once I turned into an adult , it 'became' an ISA). I also have a Nationwide ISA.

I plan to keep my Britannia ISA open and basically 'park it'. The Nationwide ISA wasn't making me any interest, so have just applied to change that to an online one with them because the rate is much better. I've applied online and asked to transfer my current Nationwide ISA money into this new online one.

Now...my question is here - I've seen that they are doing a 'save to buy' ISA which gives you the option of applying for one of their 'save to buy' mortgages assuming you meet various conditions (one of which being that you put £50 per month into this 'S-T-B' ISA) and I think it would be a good idea to open one and start putting the minimum in so we have the option of their 'S-T-B' mortgage when the time comes.

So...can I open this 'S-T-B' ISA, given that I've applied to change my Nationwide ISA to an online one. They are both the same provider, so can I have more than one with them? I'm worried I may have hampered things because I have paid some money into my existing Nationwide account in this new tax year, so am now not sure whether I can have this new S-T-B ISA and pay monthly into it, having already paid money into this other ISA....or doesn't it matter because they're the same provider? :mad:

I hope this makes sense! Thanks in advance!

evenasus

You can only subscribe to one cash ISA per year, so if you've already paid into another ISA since 6th April, I'm afraid you can't subscribe to another.

In their 'key features' of the STB ISA it states...

If you've already used your cash ISA allowance this tax year then take a look at our Save to Buy savings account.

psychic_teabag

Normally, I think the fact that you've paid into one ISA during the year means you can't pay into this STB one. However, I think Nationwide are different in that they allow you to split your ISA subscription over any of their ISA products.

I assume the ISA rules allow this : normally, one hears "can only subscribe to one ISA per year", but maybe it's actually one provider, and one ISA is just a simplification that most providers impose. Not sure. Anyway, check with Nationwide but I think you might be okay.

http://www.nationwide.co.uk/isas/isas-explained/default.htm