multiple mini cash ISAs?

terryoa

Hi

Sorry to ask what is probably a very silly question but I have always thought that an individual could hold (and pay up to £3k into) only one mini cash ISA at any time in any given year. However I have recently been advised - by First Direct - that even if I already hold an MCI with another provider then so long as it was opened before the current tax year then I can open a second with a new provider this year (i.e. I can in theory open one new account with a new provider per year). Furthermore I can pay up to the maximum allowance into each account in each year i.e. 2 accounts - £3k into each each year.....and so on.
Apologies for my clear lack of understanding in this area but any advice appreciated.

jem16

You can indeed open a cash ISA with a different provider each tax year. Or you can keep the same provider each year and add £3k each year.

What you cannot do is pay into more than one each tax year. Whichever one you have paid something into becomes the "active" one for that year. The others for previous years will still pay out interest but you cannot add to them.

terryoa

Thanks for the reply Jem - very clear explanation and much as I thought it would be. I seem to have been somewhat mis-advised by FD so I think I may call them again just to see what they say second time of asking.

jem16

Sounds like a typical bank's advice

RayWolfe

terryoa wrote: »

Hi
However I have recently been advised - by First Direct - that even if I already hold an MCI with another provider then so long as it was opened before the current tax year then I can open a second with a new provider this year

The advice you received looks OK to me!

jem16

It was the 2nd bit of advice that was wrong not the first bit.

terryoa wrote:

Furthermore I can pay up to the maximum allowance into each account in each year i.e. 2 accounts - £3k into each each year.....and so on