Saving in two cash ISA's with the same provider......?

ReallyBigMisterBig

I have been reading the webpage "ISAs explained" on the Nationwide Website.
Under the section titled "What types of ISA are available?" it states that there is the "Option to split your allowance between Nationwide's full range of cash ISA accounts, for example, save £2,500 in an ISA with instant access and your remaining £3,140 in a fixed term ISA"
I would like to know if this is actually possible when according to Santander (who I saved with last tax year), you are only allowed to save in one ISA account each tax year whether it be instant access or fixed term? Can someone please clarify this for me?

Many thanks

Lokolo

The technical rules say yes you can do it, but not all providers do allow it.

When it says you can only subscribe to one ISA, the rules actually state that you can only subscribe to one ISA manager (so one bank). Just not all will allow you to split your contributions between different accounts.

AirlieBird

ReallyBigMisterBig wrote: »

I have been reading the webpage "ISAs explained" on the Nationwide Website.
Under the section titled "What types of ISA are available?" it states that there is the "Option to split your allowance between Nationwide's full range of cash ISA accounts, for example, save £2,500 in an ISA with instant access and your remaining £3,140 in a fixed term ISA"
I would like to know if this is actually possible when according to Santander (who I saved with last tax year), you are only allowed to save in one ISA account each tax year whether it be instant access or fixed term? Can someone please clarify this for me?

You will still only have one Cash ISA. You are making the same (understandable) mistake that most people make and taking the account to be the ISA when it is not. A cash ISA is merely a wrapper in which you can shelter any valid savings account from tax. With Nationwide you can place different types of accounts within your single ISA wrapper. Your ability to do this with other ISA managers depends on whether their IT systems can handle multiple accounts within the same ISA wrapper. Most cannot.

thenudeone

Newcastle Building Society is another one that offers this service (although the rates aren't great)

Anthorn

thenudeone wrote: »

Newcastle Building Society is another one that offers this service (although the rates aren't great)

At first sight Nationwide looks better than Newcastle BS but not when we delve into it: In order to get the advertised 3.1% instant access ISA we must also have a Nationwide card account. When we look at instant access ISAs for non-account holders we find Nationwide offering a measly 0.25% and Newcastle BS offering 2.6%. There is a similar situation for notice and longer term ISAs with Nationwide offering in the region of 2.6% compared with Newcastle's 2.70% - 3.30%. To get the Nationwide's Flexclusive cash ISA which gives 4.25% we need to have an existing flex account.

So those who already have a card account at Nationwide will get a better deal at Nationwide but those who don't have a nationwide account will get a better deal at Newcastle BS.

But you'll get a much better deal if you put all your eggs in one basket at Cheshire building society paying 3.50% in the first year - includes a first year bonus.
http://www.thecheshire.co.uk/Home/