Upgrading santander cash isas- new account or not?

Happy_money_saver

I have had a direct cash isa with Santander for a number of years & try to keep up to date with their interest rates, so I don't miss out (my experience with their customer services has been OK). I recently upgraded to their Issue 9 isa @ 3.3%

I understand you can open only one isa per year & contribute to one cash isa only in a year. My question is, as I have upgraded to a new direct issue isa this yr (in the current 2012-2013 tax yr)- does this mean that I can not open another cash isa this year? Does the isa upgrade count as a new account?

I have just been given some money by a family member & I am happy to tie this into a Cash isa for 2 yrs & the best rate I can see is with Santander @ 4%

Any comments as to whether this is something I can do or not?

Many thanks

badger09

Happy_money_saver wrote: »

I have had a direct cash isa with Santander for a number of years & try to keep up to date with their interest rates, so I don't miss out (my experience with their customer services has been OK). I recently upgraded to their Issue 9 isa @ 3.3%

I understand you can open only one isa per year & contribute to one cash isa only in a year. My question is, as I have upgraded to a new direct issue isa this yr (in the current 2012-2013 tax yr)- does this mean that I can not open another cash isa this year? Does the isa upgrade count as a new account?

I have just been given some money by a family member & I am happy to tie this into a Cash isa for 2 yrs & the best rate I can see is with Santander @ 4%

Any comments as to whether this is something I can do or not?

Many thanks

Your understanding is not quite correct You can open as many cash ISAs as you like; but you can only pay new money into one (at a time).

Transfers or 'upgrades' are not relevant. So, as long as you haven't paid any new money into this (or any other) cash ISA since 6 April 2012, you can open the 2 year ISA you mention and pay in up to £5640. In this particular ISA, you only have 14 days from opening to pay in though.

Happy_money_saver

Thanks for clarifying that up for me- just wanted to double check it would be ok to upgrade and open a new isa in same year :-)