another stupid cash isa question...

free4440273

...i opened up a nationwide cash isa (of £3000) in march 28th 2007. it was a fixed rate and i was told that i needed to decide whether i wished the rate to be fixed for one or two years. i opted for the latter (two year fix). my question is: can i still open up a new cash isa of £3000 from today (9th april). it seems strange with hindsight why i was 'offered' a choice of one/two years - i thought an isa was a yearly issue. and yes, because i opted for the two year fix i don't think i can access this money for two yrs (not a problem as i have no intention in doing this). also if the answer is 'yes' would i be allowed to add another £3000 to this existing cash isa or would i need to open another separate cash isa (again, this is not a problem either). thanks, sorry if this has been asked before

Sillychuckie

It is just the interest rate you fixed.
A good decision if base rates fall, but probably not so if they rise steadily (as they have been).
It will not effect your right to save another 3k each year, so you can do this.

Whether you can do it in the existing fixed rate ISA you speak of, I don't know. Check the conditions of the account. If not, you can open another (with any provider).
Also, if there are no penalties for leaving your old one, it still might be advantageous to move those funds to a new issue (if the new one allows it) to chase a better rate... although this is more effort and might not be worth while. It depends what rate you fixed it at, and the conditions of the various accounts.

jem16

Most fixed rate ISAs do not allow you to add to the ISA once opened and i believe the Nationwide is one of them.

As far as I'm aware that should not stop you opening another ISA for this year with a different provider.

free4440273

...thanks both of you, very kind and thank you Sillychuckie for the really detailed answer. you answered precisely all my points succintly, really kind. yes, in that case i will open another separate cash isa this week, probably with nationwide again. thanks both, hope you had a reasonably good easter break

free4440273

jem16 wrote: »

Most fixed rate ISAs do not allow you to add to the ISA once opened and i believe the Nationwide is one of them.

As far as I'm aware that should not stop you opening another ISA for this year with a different provider.

...jem16, sorry to be pedantic - does it have to be a different provider?

jem16

free4440273 wrote: »

...jem16, sorry to be pedantic - does it have to be a different provider?

I expect it could be a different ISA with the same provider. However chances are you would be better with one of the better paying new ISAs such as Egg, Barclays or NS&I.

cheerfulcat

free4440273 wrote: »

it seems strange with hindsight why i was 'offered' a choice of one/two years - i thought an isa was a yearly issue.

The ISA itself, as offered, may have a term, or it may be open ended. Your personal ISA allowance is an annual one and you may add to an existing ISA ( if the provider allows this - usually not with a fixed term account ) or open a new one, either with the existing provider or someone else, it matters not.

free4440273

thanks jem16 and cheerfulcat also - all makes sense now. hope you all have good four day week